The answer to your question is "yes, Locks of Love is a reputable group and they use the hair to make wigs for children."
This was the subject of a thread in April and it bothered me then---and it still does now---to read posts stating that Locks of Love had a bad reputation. If someone has actual information about the group then please post it. Otherwise:
LoL has been a rated as "Four Star Charity" for the last three fiscal years by Charity Navigator. Here is the current rating : http://www.charitynavigator.org/index.cfm?bay=search.summary&orgid=9285
During those years the percentage of income that was used for program expenses increased from 81% to 90%. (That info is on another page but you need to register to see it.)
As of April, LoL met the 20 voluntary standards for the Better Business Bureau's Wise Giving Alliance. I believe they are due for a new report and the BBB website says they have the info and are reviewing it. If you look in the old thread you can see my comments about it. http://forum.dog.com/forums/p/77369/602433.aspx#602433
As for where the hair goes with LoL----if the hair is long enough then it is used to make wigs for children who have lost their hair. Hair that is too short or gray or for some reason can't be used is sold and THE MONEY FROM THE SALE IS USED TO OFFSET THE COST OF MAKING WIGS FOR THE KIDS.
Here is their FAQ page: http://www.locksoflove.org/faq.html
The difference between the almost right word & the right word is really a large matter--it's the difference between the lightning bug and the lightning.
- Mark Twain, 10/15/1888