I have only read the first page of this thread.
There is no rule that says you have to keep the fabric.
If your first inclination is to get rid of it that is perfectly okay. Do not feel obligated to make charity quilts because you were given fabric you would not use for your own quilts. There are lots of places that would be happy to take the fabric and make use of it.
I belong to a group that is making charity quilts for teens in a shelter. We individually make blocks and as a group make the quilts. We only use new cotton quality quilt fabrics.