Cheley was referring to our "Oddball Pet Snuggles", which already has a discussion thread going in the forum. That project has been going on for a few years, and we've knit several small blankets for animal shelter cages.
Oddball Pet Snuggles
It's not necessary for you to join our group, unless you want to. You can just keep going with the discussion thread you have started right here. Your idea is a good one!
Each person can make their own pet bed, as you suggested, and can deliver their animal bed to a shelter in their area. Quick and easy!