Also not a craft, and like magdalen's idea:
You can donate any to the local SPCA, ASPCA, RSPCA, etc.
Volunteering in a shelter myself, I happen to know that they always need new towels, blankets, etc. They'd be very much appreciated there, too.
So.. do they care if they are old and shabby? We have a lot that are stained or bleached.. so I'm sure I could donate those and still have a couple left over for rags and fillers for hot pads.
Thanks for the ideas