Andy,
so are you giving away bikes that are already repaired or still in need of repair?
we do two kids bikes (coaster brake only) giveaways a year, at new years time and in June at an annual local festival. we stockpile them all and then do a work party to ready about 50-70 each time.
your list of pros and cons is a good one and a lot of the same issues we grapple with. we have $5 bikes that are basically repaired walmart bikes and those are sometimes given away to someone who needs a bike but cant afford that.
we are currently going through a big culling process where we are closing shop for a week and just working on pulling out bikes we will never have time to work on and are just taking space. some will be given away in bulk and moved off site, and others will be scrapped.
Andrew
Troy Bike Rescue