We frequently get vest and other craft panels donated to our chapter of Project Linus. A lot of the designs can be used as appliques. One lady in our group just cuts strips from them and uses them that way.
One of the ladies in our guild's charity group cut the whole back piece of a vest and appliqued it on a kids quilt as the main design. It was really cute, and I imagine a child thought it was unique.
Dayle