I have most of my fabric stash sorted by color (with a separate stack of kids prints and Xmas prints) in those hangling sweater and shoe bags in a closet. The bolts and larger pieces of several yards are on shelves or up-right on the corner of the closet and scraps are sorted by color in clear plastic bins with lids. No matter how you store it, periodically you should still un-fold and re-fold the fabrics as they will fade where the outside creases are over time. I found this out the hard way and have several pieces of fabric with faded stripes thru them!