Hi Linda,
I'm so sorry I didn't reply earlier, I just now read your post. By a funny coincidence I wrote my article this week on this very topic. You can see my article
Dolls For charity.
I don't know of charities that do dolls specifically, but these difficult economic times provide many opportunities to create for others, in ways that may not have been needed before. I think ministries and food pantries would be the easiest way to go with fiber creations such as cloth dolls and crocheted clothes. Hospitals may have a problem with donated cloth items for their pediatric patients due to the difficulty of ensuring infection control with fabric. But it would certainly be worth a try. What child wouldn't welcome a soft friend during scary times?
I think your idea is a wonderful one, by the way, and would be a fun way to help others.
I will ask your question in the Doll Making Forum and see what responses I get back, I'll let you know.