It is, and their marketing does a decent job of giving people donating things the warm fuzzies about it.

You can just do more good with the same amount of effort by finding distributors who aren't pocketing the bulk of the benefit. It is a small thing, and maybe not worth it to you; my general outlook here is that if it is worth the effort for me to take old stuff somewhere vs. tossing it, it is worth 10 more minutes to find the address of the local Quaker outreach, vets assistance group or some other honest nonprofit.

There are plenty of places you can donate that aren't for profit businesses pretending to be generous donors. For business clothes Dress for Success is a great option, but even Goodwill is a better option.