Waterloo doesn't communally recycle textiles either. I was using the word to mean you recycling it into something else. I'm kind of on a kick that way right now :) Blame my sister-in-law.

Other ideas might be a purse/bookbag (it would have to be lined); a mat bag (for a yoga/exercise mat); a cushion cover; a vest (cut off the sleeves and uses matching bias tape on the armscyes); a teddy bear (or other simple stuffed animal - trickier because you have keep the sweater piece from fraying while you work); a teapot cozy ...