I am a Project Linus coordinator and one of the things we are told is that we can NOT use fabrics that smell moldy or musty. There are mold spores in the fabric and these will not be removed by washing, etc. If anyone uses the quilt that has pulmonary or allergies, it may create problems for them.
I did find that some of the fabric I got when I started my chapter had that same type smell. I washed it and put it away and I notice that a year later when it came out of the zipper bag it did smell again. I should have just disposed of it in the first place but I had to try.
Cathy in MI