I put pieces from 1 to 3 yards on comic boards and sort by color into a shelving unit. Anything over 3 yds on regular bolts. Over 1/4 yd to under 1 yd on half of a comic board on the top shelf. Fat quarters in plastic shoe size boxes in a drawer, no specific folding way, I just leave them how I receive them. Then there are clear small bins on shelves for specific fabrics, ie. sports, Christmas, baby, batiks, etc. Projects are put into 1 or 2 gallon ziploc bags and kept in a fabric bin.
Cari