How about napkins. They just need a simple turned over hem. A set of 4 would take a yard if they were made 18" square. The scraps could be used by anyone who can quilt, or use leftovers to make napkin rings.
I use cloth napkins all the time. It is actually cheaper in the long run than paper napkins or paper towels and looks so nice on the table. There are so many pretty cotton fabrics now you can really set a pretty table.