My mother recently passed away and we asked people to donate to her favorite charity instead of sending flowers. She had a favorite lap quilt that I had made her years ago and this was placed over her. It added the "color" of flowers and I feel better knowing she would be happy with the amount of contributions made in her name to the charity. She was buried with the quilt and I'm comforted by that.
I know this is a little more personal than making quilts for Hospice patients that you don't know but I still think most family members would like something like this.