I just saw a place online this morning that the organization made quilts for children around the world who need cleft palette and cleft lip surgery. The doctors & nurses donate their time, and each child wakes up with a new quilt to keep him or her warm, and can take home with them. I'll see if I can find it.
There's always Quilts for Kids & Quilts of Valor. If you have fabric that not 100% cotton, there's also a group that sews items for soldiers returning with injuries that keep them in the hospital for long periods. It's part of Soldiers Angels, called Sew Much Comfort.....just a few. :-D