Personally, I've just started trying to cut my voluminous scraps into usable squares and strips. They store more compactly and look pretty too. That said, I don't save anything smaller than 2 1/2". I cut 5" strips or squares and 2 1/2" strips or squares. I'm not even sure I'll ever use them, but as I said, they store better and look nicer and someone, someday, will probably want them.
Smaller scraps go into a pillowcase that will get sewn up and donated to the local animal shelter for pet beds. I've confirmed that they want them. They say they give them to people who adopt a pet.