Quilts for Kids is an organization that supplies quilts to hospitals for the comfort of children confined there. I've just requested a quilt kit from them, and I'll be making at least one quilt to donate to them.
From their press release: Quilts for Kids, Inc. transforms discontinued, unwanted and other fabrics into quilts that comfort children in need. These children are fighting a life battle with cancer, AIDS, and other serious illnesses. We also gift to children of abuse. Our goal is to link design centers and other fabric sources nationwide to their communities, so that children in need in those regions may be served.
The quilters who create and donate quilts have done a fabulous job - the quilt gallery on the website has some beautiful work.