Care Wear, http://www.carewear.org/index.cfm , based in MD, “ is a nationwide group of volunteers who knit, crochet, and/or sew, providing handmade baby items to hospitals. All Care Wear items are given free to infants, children and their parents.” (quote from their website)
To help, you can find Knitting, Crochet, and sewing patterns here:
http://www.carewear.org/index.cfm?pid=patterns/_patterns.cfm

Current campaign for Youth and Newborns:
http://www.afghansforafghans.com/campaign.html
They are in need of baby hats, baby socks, and baby blankets
US due date: February, 2008
Canadian due date: February, 2008 (via elann.com in BC)
© 2007 USPS. All Rights Reserved.
“WASHINGTON, DC — Knit One. Mail, too.
…….
To mark the knitting revolution and the value of today’s mail, this week the Postal Service is calling all knitters. Armed with balls of yarn and a few good needles, participating Post Offices nationwide will open their doors for a “knit in,” mirroring the popular knit-in-public events taking the country by storm. In addition to knitting demonstrations, sweaters, scarves and other items knitted or collected from events can be donated and mailed to local charities, shelters and hospitals.
….” article continues here: http://www.usps.com/communications/newsroom/2007/pr07_092.htm
(source) Visit the Holiday Press Room at usps.com ”
One group is putting it to good use with a Great Falls, MT Postal Knit-In on Dec. 7. Read about it here:
http://www.usps.com/communications/newsroom/localnews/mt/mt_2007_1127.htm
Updated - December 7, 2007
USPS News Page has listed more Knit In Events. Check to see if there is one in your area:
http://www.usps.com/communications/newsroom/2007/pr07_092events.htm
Tiny Stitches, http://www.tinystitches.org/ , based in Gwinnett County, Georgia provides basic layettes to families in need, and burial ensembles to any family who suffers the loss of an infant, regardless of need.
They welcome volunteers who can sew, knit or crochet.
Dropoff locations for donations of supplies or items can be found here:
http://www.tinystitches.org/contacts.htm
News story and video clip at NBC4.com - Fifth grader shows gratitude by knitting caps for troops in Iraq