I've been mulling over this same issue. I was part of a bigger effort, but finally decided it wasn't for me. I want more personal interaction with both the crocheters, or knitters, and the receipients. So, as soon as I get over this cold, I'm going to talk to our pastor at church about it. Our town is even smaller. But we have a lot of people who might be interested. Could you go through a church? Some other things I've read about was contacting some clinic or agency or hospital, and seeing if they'd be interested in donations. And I thought we could also provide blankets and teddy bears to police cruisers. I did that in Colorado, and it was very much fun.
Please let me know if you guys have any other ideas, and how your efforts go. My biggest obstacle is shyness! Thanks.