As I was checking out Katelyn’s post, Gift Tags From Scraps, over at Stamping Mad, I was stuck with the idea, “What about using fabric scraps from our quilting?  These would make neat patchwork gift tags.”
So often, techniques for one type of art or craft can be utilized in another.  Also, you could combine paper scraps with fabric for a mixed media effect collage gift tags.
Katelyn has given directions for making these gift tags at her blog.