Lana, I know I would LOVE to receive a gift like that! Good advice about checking with family members, though it looks like you already did.
I purchased a pin for my Mom one year that was a stuffed heart shape, cut out of a good piece of an old quilt. It was very original and she wore it often. So if you have some small scraps, you could make pins out of them, or even stuffed ornaments to hang on a seasonal tree.
Here are some other ideas, depending on the size of the fabric pieces and their condition:
Make throw pillows
Stuffed toys (I've seen bears made out of old chenille bedspreads -- they sell for $$$)
Use scraps to trim a set of place mats, or pillowcases or a jacket or vest.
Use pieces to add to a shadowbox (maybe with an old book, photograph, pair of glasses, etc. that belonged to the family
Decorate a neat wreath or swag for your craft or powder room
Put interesting pieces in tiny, antique looking frames
Make pincushions
People who make collectible doll clothing love bits of old fabric and needlework
Let us know what you decide to do with this fabric!