I've struggled with a good way to organize my fabric (mainly fat quarters and less than a yard cuts) for a long time. So far this system is working. This wall is opposite the wall where my embroidery machines are located. These are CD racks and the fabrics are organized by color and theme.
I am on the verge of ourgrowing this but for now this holds all my "small" pieces of fabric, you can see some cubies have more room than others. The rest of my fabric (mainly large pieces) are in the cubeical bins below the CD racks and are also organized by theme or type as well
If you follow my blog, you might remember a picture of my sewing area last year where I had the racks on the ground in the corner by the window. When I started to run out of space, I had the idea to turn the cubeical bin (that was on the wall where the bed is now) on it's side and put the racks on top. (Don't know why it took me so long to think of that!). The CD racks are extremely sturdy and quite heavy so they can hold the weight of the fabric well. I had a difficult time getting all three, it took me about 6-8 months to "find" them because I refused to pay regular price $40. I actually found two at the Habitat for Humanity ReStore here in McKinney (9 months apart) and the last one at a neighbor's yard sale last fall.
Here is a picture of the entire wall . You can see how all of the posts I've done for the last month or so fit together. The fabric letter banner, button wreath, lamp shade, covered cans, pillows on the bed, etc. My space is still a work in progress but I think it's coming together nicely. I got all my ideas from looking at craft rooms on Pinterest, I hope this inspires someone else.