i put all my scraps in zip lock bags based on color and then when i have a bunch of one color scheme i sew them all together to make a sheet of fabric.
then i take this sheet and cut it up to make applique of animals for children's quilts.
i use interfacing to do the needle turn applique and before i attach it to the background fabric i snip the interfacing and stuff the applique with some batting to make it puffy.