Depends on the clothes and on the rip. I have taken some of my athletic clothes to a specific tailor and had them repaired. I did this because the cost of a new running tight was much more than the cost of having her stitch up the hole.
Jeans though, or maybe shirts, I just toss. I think there is a clothing recycling place in my area though. They take all kinds of clothes, ripped or not, and either recycling them or done them. Perhaps I need to look in them an learn a bit more. The wife and I just cleaned our our closet of old clothes (no rips) and donated them all to Goodwill.
If you have any friends or family members who are textile artists (quilters, etc) you may check with them to see if they have any interest in repurposing the material.