I also look at clothing, bedding, and curtains as fabric sources when at yard/garage sales. Some of the fabrics in those items are awesome.
I don't see a problem with using repurposed fabrics in donation items if the fabrics still look new. Do any of you? (This might be a whole different topic - but I found myself feeling resentful of a couple of groups wanting donations that stated to not use repurposed fabrics. I wash whatever I use - and only use stuff that still looks new for these purposes.)