I smiled to read that donation quilts should be made of the same things I make for myself, because I do agree. I use blends, sheets, etc. in quilts for my family as well as in donation quilts. I would never take an attitude that oh they are homeless, let them have this old icky stuff. But I do have the attitude that if it's good enough for anyone else, it's good enough for me.
Another user of sheets for all aspects of quilting here. I especially love using them for borders as they can be seamless due to the length of the sheet fabrics!