Here's my new favorite charity baby sweater pattern:
http://margarethubertoriginals.com/CHILDBLUE.html
This is how it turned out for me:
http://i60.photobucket.com/albums/h3/salos/BabyBlue.jpg
I love this pattern because it's simple and elegant. It's easy enough for charity, but lovely enough to give your best friend's baby. I prefer making the smallest size because it gets a little heavy, but that's just me.
Enjoy!