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
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
Doulas in Portland, OR are running a charity knit-along blanket drive for two charities in their area.
This website, http://babyloveblanketdrive.blogspot.com/
gives drop off locations, or if you’re not local and want to donate, a mailing address to send your knitted blanket.
Blankets must reach them by December 15, 2007.