mmmm, I just thought up a cute charity project, but since you said you don't care to do those, you might see if any girl scouts, shelters, or elderly people are interested. I would make knot dolls with some of the yarn, and then give the dolls and the remaining yarn to someplace, where maybe a)girls/kids could learn to knit scarves, hats, and other clothing for the dolls using the leftover yarn; b) volunteers could make doll clothing and donate to needy children a doll that has clothes to play dress up.
Knot dolls are really easy, too.
ETA: oops, skipped the post where you said your neighbor took it - thats wonderful!
recent FOs: Shedir cap, Bricks of Atlantis, Pirates Hat, Citrine Socklets, Teddy bears, 1 entrelac sock
OTN: scraps blanket, Shedir for Teenie, Ice Serpent Hat
NIL: Qiviuk tam re-visited; weatherproof gloves; sweaters
My knitting blog: http://emilai333.wordpress.com/