If I can sell a disc for $2 or more on ebay, I'll do that. I will also bundle CDs from the same artist and sell on ebay, usually at $1 per CD 9e.g., 5 CDs for $5). If not ebay worthy, I fill a milkcrate of 192 CDs and I list them on Craigslist and Facebook Marketplace for $30 per crate. After that donate to a thrift shop.
Our local high school music department also has a music sale fundraiser each year. That is a worthwhile donation option.