I own a long dagger/short sword. The hilt is in the design of the German eagle with its wings spread out as the hand guard and in the middle of the hand guard is a swastika. The scabbard is also adorned with swastikas on the top, mid section, and bottom.
I don't want to own this piece as I don't want to be seen as a Nazi sympathizer or anything of the sort, but I don't want to sell it to someone who actually is a Nazi sympathizer or something like that.
What do I do with it besides trash it? I don't want to trash it because it's decent quality. It's not historic in any way (which disturbs me to think about) but it's well made.
If you want to give it away, look for a museum. Alternatively look for a history group or a theater group you could give it to. Turning a real world items into functional stage props with connection to the time period of plays is is pretty neat.