We have a closet that is supposed to be for laundry but the washer and dryer is already hooked up in the basement and I didn't like the idea of having the laundry right next to the door that everyone comes in and out of anyway. So I took that space and turned it into my craft closet! Now instead of having my craft supplies crammed into cabinets and boxes, it is all in one place and there is an area to work on things and I can leave out half-finished projects and just close the doors when I need to take a break. I love it!
I also have all of our gift wrap nice and organized now! Gift bags are on clothes hangers and separated by style (kids, adult, christmas, etc.) and the wrapping paper is stashed by the wall. I just put a couple of screws on the wall on either side of the paper and used those to tie a string around the paper rolls so they don't fall over.