I wash AND include a card explaining that it IS a brand new quilt and WHY it has been washed before the new owner receives it. Including all the reasons listed above.

Jan in VA

I would wash it and also include washing instructions. I sometimes use Retain to keep the colors where they belong and include this information with the quilt regarding the Retain. I also include a few color catchers for the first couple of washings. I usually test the fabric to make sure it doesn't run. I like the protect my gift quilts as much as possible.
Sue

I agree with washing it + explaining that it's brand new, etc. Depending on the batting you used, you might be able to iron it back to a semblance of its unwashed self.

I always wash before donating or gifting. I also send washing instructions and a couple of color catchers. Have never had a quilt run, but am always afraid one will!

I also wash after binding as a last step. I have pets & no matter what I do that will be hair on it. I also let whomever know the quilt is cotton fabric, batting & thread and that it has been washed & what them should do to wash.

I like Jan's suggestion. Did you pre-wash your fabrics? I am of the pre-wash persuasion. That way I can prevent any fading or bleeding of color. So when I donate or gift a quilt, what you see is what you get. I often include a bottle of the product I like to use when washing the quilt along with it

I always wash a quilt following construction. The person who bids on it or receives it know just what they are going to have if they acquire it. I pre-wash fabrics only if I think there is a question about colorfastness or excessive shrinkage. I know the fabric might shrink some when washed but so does the batting. The amount of shrinkage is more controlled by doing it this way. I also use Elmer's school glue to baste the layers together and I use Crayola brand washable markers in making the quilt. I want all of this stuff out of the quilt before it is used. I wash them in a top loader machine and dry flat on the floor. A recipient is more likely to feel comfortable washing a quilt that has already been washed once. I include directions for laundering when gifting it.

Curved Log Cabin made for fund raiser - UPDATE
 

Entered my quilt in the above fund raiser for auction. NO ONE bid on it. Put a $100.00 base bid. Fortunately, I had shown it to my grandson's mother-in-law and she asked him to bid on it "at any cost". He did and she will now have it for her own. So grateful to her and my grandson. Apparently, she saw its beauty and appreciated all of the hard work that went into it. Thank you, Wendy and Jeff.
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Apparently your beautiful quilt went to the right place.

I have heard of this type of thing happening before. I have been advised to just give a twenty dollar donation when someone asks for a quilt for a silent auction, or even a regular auction. Most folks just don't realize what goes into making a quilt.

And I am glad the quilt ended up with the right person!! It is a beautiful quilt, and she got it at a bargain price!!

Dina