Old baby towels
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Chet - posted on 10/27/2014
Animal shelters are very often in desperate need of towels. I know that it's not up-cycling, but you could call and see if they're interested in baby towels. They might be good for small animals.
I've used ours for rags. I really, really like them because most of the ones we have are thin and stretchy and good for getting into little spaces, but still really absorbent.
If you sew they'd probably be good for making into bath mitts, especially the ones for little kids that look like puppets.
I've also seen this done. You make a shaggy bath matt by cutting them and knotting them through mesh. How well this hold up probably depends on the type of towels you have. I don't if the matt would last very long, but I think a project like this would be really good for keeping our kids busy on a rainy afternoon.
Raye - posted on 10/27/2014
One thing that might be a good heirloom piece is to make a quilt out of them and give it to your child when they are older. I have a quilt that was made by two of my grandparents - the squares were made by my father's mother and they were sewn together by my mother's mother. I don't really like the design of it all that much, but it has sentimental value and I have kept it. At some point I will pass it along to someone else in my family.
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