Every year we still look over all of the clothes and.choose some to donate if we are sure that we are not going to wear them more.
As for general fabrics we don't own any… no old curtains or what ever.
For example some tights for ages we are using when colouring Easter eggs. And now they are good quality so late forever.
T-Shirts when they are bad even for the outside work quite often become great for cleaning floor or any kind of cleaning really.
The most useful thing for us would be to make reusable bags. It is good for storage and for giving presents.
I am thinking about looking up in my grannies all clothes and fabrics she has and maybe to give them a second chance to be used. Like some old linen blankets are quite bad in the places even they had never been used but would be good as pillowcases as kind of Bo ho style.
And what is not useful always goes to fabrics recycling containers.