One yard is perfect for a car/airplane-sized lap blanket! Just get a flannel to put on the back (prewash), sew it together and knot every so often to hold it all together. Perfect gift for a traveler. It rolls up nice and small and you can tie it shut with a ribbon.
Idea # 2 (and it may already be mentioned) If it is a kid-friendly print do as above and donate it to Project Linus.
Idea #3 (Sorry, the ideas are flowing!) Make a pillowcase for ConKerr Cancer. They have the pattern on their website with ydg requirements.
Have fun with it!