Not all yarn needs to be knitted/crocheted. You can donate it to groups that will make other use of it. My son's preschool is constantly making "necklaces" that use yarn, they also make their own "books" and use yarn for the binding, many art projects use little bits here and there, etc. I used to use it to tie around the top of jars with a little circle of fabric for a decorative touch (use for those layered cookie/brownie mixes).
Just tossing out some ideas of other uses for it since you say it's icky yarn. I'm sure you can find someone or someplace who will take it!