I struggled with this for many years, and made some mighty ugly quilts in the interim, trying to use scraps. Now unless it's true yardage I never restock it in my closet (floor to ceiling shelves, arranged by color). I cut all the scraps into 3 1/2 x 6 1/2 bricks, and arrange those in a drawer by color. Anything smaller is cut into 2 1/2 inch strips which I donate to a friend in our comfort quilt making group, and smaller than that goes into a scrap drawer. I give those to another member who loves to make crumb quilts. I have quite a few different ways to sew the bricks into quilts and I love them all.