Since I am a homemaker I get to make so many things from old clothes. You can get many creative ideas from Pinterest and Youtube to use almost every rag of your house creatively. They make amazing gifts and people love these because they reflect love and care. Here are some I make at home
Hand Bags: Old jeans are great for making handbags. there are tons of videos on Youtube on both sew and no-sew bags. I make patterns using old shirts and sometimes I use brown paper.
Grocery bags: I also make grocery bags from old clothing. Old sheets and towels are best for this purpose because they are large in size and easy alter.
Hot Pads: You can make hot hon pads from t-shirts with beautiful patterns. (Again Pinterest is amazing for ideas)
I feel like making more bags and giving them to everyone but if you are looking for something else check this amazing resource I hope you will find something of your interest. Happy Birthday to your sister!