I've mentioned this before on this site, but my group makes quilts for the patients of the organ transplant unit of a local hospital. Sometimes, in the case of kidney transplants, the donor is also given a quilt.
We also supply a children's home where kids of all ages in crisis will stay for 3 months. They get to keep and take their special quilt with them when they leave the home.
Ours is a church group, so we also support members in the church who have a need, such as starting chemotherapy or becoming permanently homebound.