I think the lap quilts are a great idea. You can donate them to the nursing homes, as they use plenty of them. Maybe you could get others to donate scraps of fabric and threads so you wouldn't have a money issue?

Also, baby blankets or such for new borns to go home with. Some very poor families don't have any, and that would be a good way to give also.

Or you could make things to sell, perhaps? Doll clothes or such even?