Sometimes it is Receiving that we Give. By accepting payment you may be giving them more pleasure than you know. If it bothers you to have the money make a quilt to donate there are many great causes or start one of your own. I have a friend that donates a quilt to a school here grandchildren used to go to. The school if very appreciative and it gives my friend great pleasure and the money from the raffle helps the school. There are always the Linus project, soldiers etc that gratfully accept quilts.
Good luck in finding a solution that is good for everyone.