Goodwill® strives to enhance the dignity and quality of life of individuals and families by helping people reach their full potential through education, skills training and the power of work.
So I did some looking on line and I found out that Goodwill will take scrap fabric. Goodwill gets many items that just don't sell or do not meet their quality standards. These items go into their salvage stream and in the case of clothing or other fabrics are sold to textile recyclers.
Have a fun day!