I have the same problem. Here's what I do
100% cotton goes into a "quilt scrap" box.

But I also do a lot of knit garments (for mom and granddaughter). When cutting them out, I throw some into a basket near the serger to use for test sewing. The small scraps I throw in the trash. The rest I save.

I have a pile of lightweight knit leftovers from tee shirts I've made. I plan to see if I can make some tank tops for next summer - some coordinate, so I can piece them. Some make nice accent pieces (ribbing, piping, etc). If the leftovers are big enough, they go into a box for donation to the thrift store. If not, out they go.

When my daughters were little, I made doll clothes. No granddaughters yet (thankfully), so for now, I just collect the bigger scraps and toss the smaller ones away. As with other posters, 100% cotton scraps are saved for my mom, who quilts. (I tried quilting, but the geometry involved ... well, I hated HS geometry class!!!!)

DonnaR/CA

I use them for applique in machine embroidery projects. I've also used them for deconstructed jeans.
Susan

It only gets thrown away if it is too tiny for a barbie top...every thing else gets saved for doll clothes.

Crazy quilts - you can stabelize any of the stretchy fabrics and still use them in the quilts - doll clothes - fabric ornaments. If there are any sections (flowers or designs) that can be cut out and heat and bonded on other fabric or used to decoupage on projects. I never throw any fabric away no matter how small - there is always some way I can use it. Very small pieces I will cut into circles and make yo-yo's of all sizes and use them in crafts or sell packages of them on E-bay or at crafts shows.......

Lynne

I keep them to make clothing for my DD stuffed animals. I also use them for appliques for her clothes. My non-sewing use is to keep them for my craft projects (I use the fabric on cards etc.) and for the kids to use for their craft projects.

Below is a link with some ideas for using those scraps:

Here is a link that might be useful: apartment therapy

Can we form a support group?

Hi, my name's Teresa and I feel so guilty when I throw out scraps - any kind of scraps! I tell myself that I might need a scrap to "mend a tear" - yeah right! Like that's going to happen! I never tear my clothes and even my two boys growing up didn't tear their clothes - stain yes, but tear, no.

If you could see my sewing room, you would know....I NEED HELP!

Anything that is too small to be an applique, quilt square or test patch goes into a box to be used for ragdoll stuffing...this way I don't have to feel guilty about throwing away anything!

I also save old nylons for stuffing, but my kitty has discovered the nylon basket and decided they are now HER toys to "hunt". She plays with them then drags them around the house to present to us as a proud trophy.

i never throw any piece away. With some leftovers I make bias tape, just for the fun of it. Some I use for patches, or to add pockets to some teeshirts. I make drawstring bags also, they are good for storing things or 'wrapping' presents. And one day I hope to use leftover flannel to make "coat of many colors" pajamas. And always remember you can make things and donate them to Goodwill shops or places like that. My first sewing teacher made little girl dresses and donated them to an orphanage. I try to follow in her example in a small way..

I watched a sewing show that featured a lady who made wonderful landscape wallhangings from the smallest bits and pieces. I believe the book she wrote was called "Snippet Sensations" by Cindy Walters. Might be worth having a look for it at the library.