How to fully erase everything . . .

I am donating my older (gray) iMac to a local non-profit. How do I get rid of everything on the computer? Should I just re-install the OS? Or is there something else I should do?
Thanks,
Ken

Do the following:
Extended Hard Drive Preparation
1. Boot from your OS X Installer Disk. After the installer loads select your language and click on the Continue button. Then select Disk Utility from the Installer menu (Utilities menu for Tiger.)
2. After DU loads select your hard drive (this is the entry with the mfgr.'s ID and size) from the left side list. Note the SMART status of the drive in DU's status area. If it does not say "Verified" then the drive is failing or has failed and will need replacing. Otherwise, click on the Partition tab in the DU main window.
3. Set the number of partitions from the dropdown menu (use 1 partition unless you wish to make more.) Set the format type to Mac OS Extended (Journaled, if supported.) Click on the Partition button and wait until the volume(s) mount on the Desktop.
4. Select the volume you just created (this is the sub-entry under the drive entry) from the left side list. Click on the Erase tab in the DU main window.
5. Set the format type to Mac OS Extended (Journaled, if supported.) Click on the Options button, check the button for Zero Data and click on OK to return to the Erase window.
6. Click on the Erase button. The format process will take 30 minutes to an hour or more depending upon the drive size.
After formatting has completed quit DU and return to the installer. Proceed with installation of OS X. After OS X has completed the installation do not restart the computer but simply shut it down. When the new owner starts up the computer it will automatically run the startup assistant.

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