Margaret C. Smith, 88, of Scargo Hill, founder of the Cape Cod Spinners Guild, died Saturday. She passed away at EPOCH Senior Healthcare of Brewster, a victim of congestive heart failure. Mrs. Smith was active in the life of her communities in two states, initially in New Jersey, where she was a longtime member of the Bergenfield Womens Club and president in 1963-65. During the second half of her life in Massachusetts, she indulged her passion for the textile arts. Besides founding the Spinners Guild, dedicated to the spinning of wool into yarn for garments and other purposes, in 1982, she was a longtime member of the Cape Cod Knitting Guild, which she served as treasurer. For many years, along with her late husband, Frederick K. Smith, she owned and operated the former Sternboard Shop, a gift shop in Dennisport, and then Salt Air Farm on Route 6A in Dennis. Living in a 1735 farmhouse, one of the older buildings on the Cape, they raised livestock, including prized purebred Merino sheep, to whom they gave names such as Naomi and Rachel, and whose fleece she sheared, dyed and spun. The Smiths were longtime members of the Cape Cod and Islands Farm Bureau, where Mrs. Smith served as treasurer. Before falling ill, Mrs. Smith also was a volunteer driver for the Dennis Senior Center. She was a communicant of St. Marys Episcopal Church, Barnstable. She is survived by three sons, Frederick K. Smith, Jr., of Glendale, CA, Gregory Smith of Johnston, R.I., and Gary Smith of St. Cloud, FL, as well as four grandchildren and two great-grandchildren. Services in her honor will be private. In lieu of flowers, memorial contributions may be made to the Farm Bureau, 120 Upper County Rd, Dennisport, 02639, or HopeHealth (hospice), 765 Attucks Lane, Hyannis, 02601.