I found this great tip from Organize to Revitalize. I love getting new towels, but never know what to do with my old ones. I don't want to throw them away because they still are good. I'm not comfortable donating them to Goodwill, etc. (because they are not nice enough for that and that would be weird!). Yet, I don't have space to keep them.
Organize to Revitalize suggests that we donate these to animal shelters. Animals do not mind what shape the towels are in as long as they have something warm to cuddle with in their cage! Visit ASPCA or Pets911 to find a shelter near you.
Thanks to Deb for this tip and to my dog Lacie for being so cute in this picture 
Each time I purge my linen closet, I donate to my local animal shelter. Not only towels but sheets and blankets too. If they are not used for the puppies and kitties, they are cut up for rags – the volunteers at the shelter do a lot of cleaning!
So glad you found the tip helpful! I usually “donate” my old towels to my own dog, but there are only so many towels he needs. =)
Deb
P.S. Love that pic of Lacie. =)
Cara – I did not think of them using the old towels as rags but I am SURE that comes in handy.
DAllisonLee – Thanks again for the tip and the compliment about my puppy! She definitely gets her share of old towels too. They are one of her favorite tug-of-war toys!
I do this all the time, Erin! Another thing to note about animal shelters is that they take pillows – which Goodwill and other consignment stores will not.