I accept the crafts for our Church Bazaar. At the time I receive them, I ask how much should we charge for the item, should we reduce price if it doesn't sell or attract interest, and do they want it back if it doesn't sell. Crafters & quilters know how much it costs to make an item and how to price it. But it's the buyers (mostly) who no idea about the time and materials and cost in an item and want it at Walmart/made in China prices!
I would not be embarrassed to tell the person who asked for one your wallhangings that it must have a fair starting bid. If they don't accept that, give them a donation and they'll probably be just as happy. Good luck!!