The fabric is already in your stash - that means you bought it at some point, right? Money is very tight for my family right now, so my stash is going to be my primary source for gifts. (And a lot of it is older fabric I got for a song at yard sales and from swapping with friends, etc.)
I think in this economy, most people understand frugality very well. If they don't, they must have been living under a rock for the last few years...