If there's a guild or group in your area that does charity projects, donate it to them. I belong to two guilds which have both been the victims -- uh, recipients -- of some of my less than wise purchases. One guild also has a bee that does charitable quilts for the womens shelter. The Sewing guild in our area also does charity projects.
Then there's the 1 million pillowcase challenge, Project Linus. I'm sure it won't be hard to find someone to take it off your hands.