There are apparently lots of places to give your knitted items away. Shawl ministries, homeless shelters, mittens for disadvantaged school kids, etc.
Katykoolkat is a sweetheart who knits for preemies at her local hospital, I believe.
There is a charity for merchant marines that gives items to these men who often spend months at sea. I have an address for that one, but I'll have to find the magazine article first. I'll post it later.
So what are your favorite knitting charities, people? Have you started one? Inquiring minds want to know!