My thoughts:
I really dislike the term, "charity"...to me it implies, "you are less than me". Why can't we refer to it as, "Just Because" as in, just because I wanted to, just because I feel your hopelessness, just because I wanted to brighten your day, etc.
In re to quality control...it seems you have an active group. Perhaps you could single those out who do substandard work and tell them you have a great need for simple envelope quilts requiring only 3 seams. That way it would be a simple process when you checked them to just reinforce those 3 seams before turning them inside out and closing up the last seam.
In re to the homeless and "ugly" quilts. I'm sure some stealing does go on but that is why the homeless carry everything with them. Every time they want to go to a service station to use the bathroom or simply move from one place to another, summer as well as winter, they must carry every single thing they own with them? ....coat, bedding, any personal items, any cooking items they've found, etc., etc., etc. If we really want to help why not make it more of a "leg up". Give them something to be proud of, not something just thrown together so we can feel self righteous. And, if you really want to be helpful, why not make it so that it can be folded up and put straps on one side so they can put there things inside and be worn as a backpack. And why not a large pocket on one side with maybe a pair of socks inside and a toothbrush and toothpaste and a bar of soap.
As I said, just my thoughts....................