(((((((( Wow, good question. Should you never use it, it will be a sweet auction later? LOL!! There are charities out there who would take surplus yarn to craft for the needly or troops overseas. The thrift stores sell yarn donations quickly IMHO.
I, too had an ice jam going on. Here's what I did in the process of a thorough inventory and nothing was in a closet but on our sleeping porch, in my craft room, etc.:
I brought it all together, bagged it all into see-through bags and included the tools needed if I thought I wanted to make it, stacked this into a priority formation then proceded on to surplus yarn, tools, etc.
I bagged it, too by weights of yarn. Within the bags, I bagged colors separately for a bag-in-a-bag system. This keeps the items free of dust, too.
I could see what I valued or had little use for at this point, so I donated the surplus but to a lovely neighbor who doesn't have much money. She got it all.
During real-world crafts club meetings, the members donated their yarn, too.
So, what's left here? The motivations to whip them out , one by one or two by two is needed. I found that knowing what I literally had and that it was well organized to be a high motivater.
Silent auctions in real world club meetings can be done also. Proceeds could go to charity of the club's choice. We love our food banks here and could donate cash or buy new non perishables. Doing so motivated the club to stay together.
My online groups do a lot of swapping; Surplus items to be included, of course. We even have a WISHING WELL in the database to fill out. Generous members can view and donate that way; It's sweet!
Now, if I could get them to not serve snacks, I'd be skinnier! LOL!!
I'll write a new topic later on ways to use up surplus yarn.
I've got so much yarn and so many projects in my closet that it all comes up to my shoulders. It's primarily worsted weight acrylic that I hope to finish and never have to use again--I'm going "Natural" after this.
Any suggestions about how to get it all used up quickly? I knit and crochet.