Our charity quilt group also makes flannel blankets for newborns at the local hospital. We use the 2 gallon size bags from the dollar store to package them, along with a matching knit cap that another group makes, and sometimes a onesie or sleep and play pj. Makes a nice gift for some of the poorer parents in the community. The nurses decide who needs them. We also make quilts for the top of the isolettes in the NICU and the folded small quilts also fit in the 2 gallon bag.