I would be furious! While I'm certainly not the best quilter on the planet, it gives me pleasure to make quilts, and makes me feel useful when they are donated to those in need. I see that as a win-win situation for me and the unknown recipient of the quilt.
I belong to 2 guilds; both give quilts to local social service organizations (not government). I deliver quilts to one of the organizations for the guilds and volunteer at that organization as well. I KNOW that the quilts go to the intended recipients because I have seen it with my own eyes.
If I made a comfort quilt that one of my fellow guild members wanted, I would expect him/her to ask me about it and to offer a 'like kind' quilt that they made in exchange. Even then, I would be somewhat unhappy about it, but would respect the person for ASKING instead of assuming that it was ok to divert it to someone else.
Some people are nervy and take advantage of others because they don't think anyone will have the guts to object. I do.