The present paper aims to explore the current clothes reuse business in order to develop a charity-driven model for the reuse-based clothing value chain. An exploratory study was carried out in Sweden to understand the business flow of clothes reuse. This study builds on the insights gained from the multiple charities involved in the reuse-based clothing value chain. Semi-structured interviews along with direct and participatory observation were used for data collection. In the current study of Swedish charities, the founders and senior managers of the organizations were interviewed. This paper provides several insights in the form of propositions and a model related to different drivers of the reuse-based clothing value chain. In this model, business factors (system, legislation, and awareness), product factors (design, quality, and price), and consumer attitude as donor/buyer are found to be key drivers. Product design, quality, and price depend upon clothes brand, construction, and material, which are collectively important for the sale of used products. In the future, researchers are encouraged to test the present set of propositions and the proposed model across different cultural settings. The model can serve as a framework for practitioners and will be helpful for designing business strategies based on the different factors identified in this study.