You might wash a couple of small pieces of the fabric to see how they do, and as for what to do with it, you could sew it into big squares for a quilt and back it with most anything, even a sheet, and it would likely be appreciated. If you live in a typically warm area, flannel probably wouldn't be a good choice, but would be good in a very cold climate. Also, when you see some of the homeless people on the streets pushing their belongings around in carts, they are usually full, so a lighter weight quilt might be advisable. However, if you are thinking about one of the missions where they house the homeless at night, any weight quilt would probably be ok.