I keep fat quarters in one area, anything bigger in another area, and anything smaller goes in the scrap basket. I make scrap quilts more than anything else so I'm always going through my scrap basket. I also keep scraps in a blanket chest and go through that too when I'm looking for scraps. I keep almost everything. Anything that is "stringy" I've started saving to toss outside to help the birds build their nests. It is very difficult for me to toss fabric in the wastebasket.