Tl;Dr: they sell hair to offset the cost of making the wigs and while they do provide some wigs for free, families pay what they can, to again offset the cost for the manufacture of the wig.
This is only partially true, locks of love only sells the wigs that they can't use. Locks of loves accepts grey hair which they cannot use to help the kids they provide for, so they sell it to places like theatres and people who want it. Locks of love provides all their wigs to children for free but with the short or grey hair they can't use to help kids they sell to keep doing what they are doing.
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