Some of us knit or crochet teeny caps and donates them by the boxfuls to various hospitals. The caps go to premature babies to keep them warm and comfortable in their first struggle in a new environment. (Heat loss happens through the scalp, and even babies in incubators are better off with a cap on). New moms, worried about their tiny tykes, really appreciate this kindness and the 'homey' touch. The little ones get to take them home with them ... a nice souvenir.
The demand has also grown for handmade baby hats for 'full-term' babies, too...