We recently changed our rooms around, as I'm getting ready to retire, so I now have a larger craft room. I had to pack everything up to store it while we were painting and installing new carpet through out the house. So now, I get to unpack everything and get it organized the way I want it. It is overwhelming at times, but I just work on it as I have some time (not retired yet, so don't have as much time as I will soon). I didn't have time to go through it while I was getting it packed, so now I that I can take my time, I will be sorting it between what I want to keep, and what I want to get rid of. I don't think I will toss anything out, as I think most of what I have someone some place can use it for something. I will either give it to a friend who teaches special ed classes, as she can always use craft supplies, or to a senior center that can use it.
I keep a bucket with a pillowcase next to my cutting table and sewing machine, so that if I'm trimming anything I can put all my fabric scraps that I know I can't use for something else into the pillowcase, and when it is full I will have a cat bed. I have had this bucket next to my machine for over 2 years, and I haven't gotten it full yet, but I haven't been doing a lot of sewing lately either... so nothing to toss in there. But I find that the bucket isn't in my way, and I like knowing that every bit of fabric I buy is going to be used for something and not tossed in the trash.