I donate quilts to kids in foster care. They are usually taken out of the home for various reasons sometimes with no more than the clothes they are wearing. Family services give them a Christmas party and give them and lots of other items to them.
It gives me a way to share my love of quilting with others and keeps them warmer than money would.
Lots of times people give money because it makes them feel good and the money (lots) go for administration costs. People needing money see none or very little. This has been on the news for years. It happens a lot more than you may think.
I donate clothing and other items because I no longer want them or can use them. I feel better donating than just throwing them in the trash.