I just read about an organization in Philadelphia called Interim House. It's a 6-month residential program for women recovering from drug and alcohol addiction. They started a knitting and crocheting program in 2004. You can check out some of their handiwork here:
Looks like they could use any yarn donations - even odds and ends.
I've contacted them to get an address for donations. I'll post it here once I receive it.
I love making these. I've made about six and they only take a couple of hours.
They are so easy but don't look it to most non knitters. People are so grateful and they are also great for covering my ever growing forehead when it gets a little cold in our shop!