I find knitters are very giving people.
These are two projects I first saw on DIY's Knitty Gritty and are perfect for charities.
This little cap is very easy and knits up fast.
Here is a link to the pattern Newborn Cap
This Teddy Bear looks difficult but is very simple to make.
It is all one piece from the head to the feet and has very little seaming.
Here is a link to the patternTeddy Bear