First you should decide what is the smallest size you are willing to work with. For me I don't keep scraps smaller than 1 1/2 inches, since I do like making mini quilts. Any scraps that are odd shapes and are 3" or bigger go into my applique scrap basket and they are sorted by color. Since most of my scrappy quilts are made from squares and rectangles I will cut my left over fabric into the sizes I use most frequently. These shapes are put into baskets and sorted by color. I do not make crumb quilts so and pieces of fabric that small is of no use to me and goes into the trash.