We do them both. FreeCycle saves a huge hassle on hauling & dumping fees.
When we recarpted our rental last month, we had 1800 sq ft of 15-year-old carpeting and its 28-year-old "padding". The padding was scooped up (with flat shovels & dustpans) into 40-gallon trash bags and then stealthily distributed among seven of our neighbors' trash cans after sundown. It took a lot of work to haul that stuff up & down the street.
The FreeCycled carpet went to (1) a military base house for a couple with a new baby and not much else and (2) a woman starting a gymnastics business who wanted to carpet her waiting area. We got our first call in 30 minutes and it was all over by the end of the day, straight out of our garage, no effort on our part.
Aside from avoiding contractor's removal fees, the carpet guys greatly appreciated being able to get right down to the tack strips & new padding without a messy demolition & cleanup. The job took less than six hours because they could see the finish line from the start.
When I prune our mango trees (with a chainsaw) I FreeCycle the wood. I have a half-dozen UH art students on my e-mail list for the next tree.
Next we're FreeCycling bamboo/reed roller blinds, an old louvered wood closet bifold door, and a box of old 12-volt yard lights. I can't believe what some people will drive by our house to pick up, and I'm not adding to the landfill.
Our kid wanted a weight bench to work on her upper body (who am I to turn down a grrl's request like that?!?). Local retailers were asking between $125-$400, weights extra. Yesterday, after just two days of searching Craigslist, we picked up an almost-new Weider system from a frustrated owner who was getting ready to move and just wanted it outta there. $30.
Next year we're buying a used Prius, a 2001-03 model for around $10K. Even here on Oahu I see a couple a month...