As the Village Voice explains, Silence of the City publishes Talk of the Town pieces that have been rejected by the New Yorker. When McSweeney's started off, didn't they publish work rejected from other newspapers/magazines? (via b&a)
Update: "McSweeney's began in 1998 as a literary journal, edited by Dave Eggers, that published only works rejected by other magazines." More here. (thx, steve)