I just found this wonderful website today and signed up to be part of their Christmas toy drop.
Each particpant makes a toy and then leaves it in a public place to be found by a child and taken home. The plan is to do a world wide toy drop the weekend before Christmas.
Another nice project is going on at the new website Mama-to-Mama. Hand made caps and blankets are being collected for newborn babies in Haiti. A pattern is provided for making newborn caps out of old T-shirts. It's really a very clever way of recycling something you don't wear anymore or your children have outgrown, and using it to help someone in need.