I'm confused...maybe I'm misunderstanding the question, but if you donate to Goodwill/Salvation Army etc., that donation is tax deductible, if you're itemizing. If you're donating quilts to a recognized charity, you should be able to take a deduction. You can't deduct the cost of labor, but your deduction should be based on "fair market value" - what someone would be willing to pay for it. I was at Salvation Army thrift store today and they were selling quilts for $24.99.