I'm very active in making group quilts to give away and have joined a knitting/crochet circle this past year for the same purpose.
Usually, people who poo-poo the idea of donating nice, handmade items *cannot* make the items themselves, and are equating our work to the cheapest, worst stuff they've ever seen for sale as trinkets. They have no idea what "quality" means.
Their loss. Hold onto your ideals and good feelings.