What to do with the clothing that is 'not good enough' to donate to a Secondhand Retail Store - but 'still good enough' to paint in?
Here is a place in southern Minnesota that will accept such items.
http://www.wipersrecycling.com/items_wanted.htm
They said they will also occasionally accept the snibbles and bits left over from trimming blocks, etc. when they do 'a grind'
I have about four bags of this kind of thing - what's left of a pair of jeans after cutting as many squares as I could, the seams left over after cutting a shirt apart, etc. etc.