Appears to me there needs to be a definitation of "ugly". Is it:
Color choices
Pattern choices
Fabric used
or......workmanship
How much does our personal preferences effect the creation of a "non-ugly or ugly" quilt.
There is a scene in the movie "How To Make An American Quilt" where Anna tells the group "I just don't want to make some ugly quilt". She is referring to color choices and her opinion of what is correct.
I believe we deny ourselves the pleasure and satisfaction of "charity" by getting too hung up on producing work we may only want in our own homes or what we would give our friends, relatives, children, grandchildren. I do have an issue with the attitude that sloppy work is ok. Good and servicable workmanship can be produced with what I consider unsuitable supplies and serve the ultimate need.
If one has a stack of donated trash fabric......sort out what can be used, donate to Goodwill what could be used by others and dump the rest. What may be trash to me just might be someone else's treasure.
There is a local quilt shop that has a closet where sewists literally dump bags of their unwanted stuff. We periodically sort it out. It contains decorator fabric swatches, fake fur, dressmaking fabric and a lot of quilt fabric.
The decorator fabric goes to make sleeping bags, fake fur for stuffed bears for the local police, dressmaking fabric to a local church that makes clothing to send overseas.........quilt fabric for quilts and anything not large enough for traditional quilts - get in a pile for string quilt blocks. I just wish we cleaned out more often. Folks need the products we could produce.
I consider this an exercise in creativity.