craft room redo: organizing fabric

I will be the first to admit that I have a lot of craft junk stuff.  I try to buy supplies only for specific projects, but somehow other junk stuff jumps right off the clearance rack or the remnant bin or even the regular price shelf and right into my cart.

As I move my junk stuff from the basement to my new craft room I am finding more and more items that I forgot I have.  And here is the dilemma...in general I am not a pack rat, except when it comes to crafting supplies.  With crafting supplies, I am not just a pack rat...I hoard.  I agonize over what to throw away and what to keep.  Every little thing seems to have value.  Each scrap of paper or fabric or ribbon seems like it has a use...some day.

Even though I hoard craft supplies, I never thought of myself as a person who has a lot of fabric.  I think this is because I don't sew with a lot of prints.  I might buy muslin or linen by the bolt (with a nice juicy coupon), but I don't see myself as a fabric hoarder.

For the new craft room I bought four pretty milk crate baskets at Target to store fabric.  I thought that should do...

and it did...

just barely...

That might not look like a lot of fabric to some.  It's certainly less fabric than my grandmother has, but I was surprised at how much fabric I have.  I also learned that I haven't met a red or red striped fabric that I don't like.

These milk crates will be stored on a shelf in my closet that is transforming into a desk area.  Here's a progress shot.

I think I will like this storage better for my fabric.  I can see what I have, which will hopefully lead to using more of the fabric I already own rather than buying new.  

My bolts of muslin and linen will most likely be stored under my sewing table.  The bin that I bought for scrap fabric is already filled to overflowing so I need to get to work on making some things out of scraps also.

What is the best thing to do with fabric you know you won't use?  Will goodwill take it?