Most are getting donated to the local middle school, but a few are dead and gone. Madison's recycling program doesn't cover pens yet; however, in looking around for places I could take them I stumbled onto Terracycle. This company recycles and reuses almost everything other recycling plants won't take. They reward you points/cents for what you recycle with them and then donate that money to whatever school or organization you'd like. It would be almost pointless for one person (as the cost of shipping would outweigh the points earned), but it's a great system for businesses and community organizations. Below is a video listed on their site showing where just one of the items they recyle goes.
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