I have worked on several OB units that receive tiny blankets, gowns, hats, etc for babies who die. Some of them are born too early so they are very small. The babies are dressed in these beautiful items for their time with their families. The parents can then keep the items in a special memory box, also provided by these volunteer organizations. If you talk to a manager of your local Labor & Delivery unit they should be able to connect you with the right people.