Hi Linda,
First of all, WELCOME to BellaOnline! I look forward to reading your articles.
I used to be a labor and delivery nurse and I know first hand how welcome those donated blankets are. Pregnancy losses come at all stages of development and some of the smallest blankets are frequently the most needed. We had handmade blankets just mailed to us and were so grateful to get them. Most crocheters wouldn't think to make blankets only 12 inches square, but for a very tiny fetus they are perfect.
I'm sure any hospital that has an L&D unit would be happy to have very small blankets donated.