Kimmie, that is a wonderful project! My best friend lost twins at 22.5 weeks (another 10 days and they would have been 'viable'), and the hats and demise pouch she was given to put her babies into was just beautiful! (Yes, I saw the babies, and it was the saddest but most necessary thing I have ever done).
I already donate things to my local hospital, but I will do up a couple more in the next month or so (too many projects on my to do list at this point).
I am very sorry to hear of everyone's losses.