Boy, that sure does look like a lot of fun with squares everywhere!!
Sorting, matching and deciding are fabulous activities and the girls will remember doing this forever. You are not just making warm items, you're making warm memories.
My DH just came back from the USA and he was shocked at how many and how visible needy people seemed to be everywhere. We keep hearing about need, but it doesn't actually hit home unless it's in your face, I guess. I love your description of the man who started this whole idea for you.