This would be the best/easiest time to do it. Have your daughter help you if you can to go through her toys and to see if she can help give away the toys that she no longer wants and you could bring them to a donation place that helps with children in need that don't have anything for Christmas. I can't remember how old she is exactly so it might be hard for her to understand but it would be very rewarding. Also, with the new children there will always be new toys so I say just get rid of the ones you don't want. We did that recently and it is such a freeing feeling!! I think they get overwhelmed if they have too much and they don't know what to play with. Also what you could do is just get a few bins and put the toys in them and then rotate through the toys so she has a few that she plays with and then in a few month switch them out.