What to do with fabric scraps?

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I have tons of little bits of fabric, some in little squares, some in long strips, but none are really big enough to do anything with. Does anybody know if it's possible to recycle fabric or donate it somewhere? Or does anyone have a good project idea that would use up billions of small bits of fabric? They're all big enough so that I'd feel bad just throwing them out, but they aren't really big enough for anything else.

The only place I found to donate extra fabric to is SCRAP, which is a really neat organization in Portland, but they only take it if there's at least a half-yard.

When I figure out how to work my camera, I'll post pics of the cat bed I made today!