I'm organizing my fabric now.. it's a horrible mess... It went though the tornado, got sent out to be cleaned, plus I have my MIL's how passed away, and fabric that was sent to me.... This is how I'm doing it.
I sort first by type of fabric, cottons, flannels, blends, etc. Any collections that came together or if I find another piece of it, those stay together. They were meant to go together and always look great together.
Then I sort out special ones like seasonals, keeping Christmas, halloween, easter, etc. together. If it is a short, 1/4 or 1/2 yard, they are kept separately, but sorted the same way. After the collections and special fabrics are out I sort according to color, stacked from light to dark.
All my fabric is folder by ruler and I've attached a small piece of paper telling me how much yardage is there and if there is any other thing that needs consideration like a flaw or a missing part... It is a daunting task to get it all in order again.