This is a great activity for a group of youth to do for a community service projects. Hospitals will often times accept hats made for babies to send home with newborns to help keep their head warm.
These are something that I often do with the youth at the Juvenile Detention Center Shelter Home. They are pretty easy to make and can go pretty quickly. You can change up the style by adding a pom at the top or a brim at the bottom. You could even make a longer one and have a modern style slouch hat for a baby.
All that is required is to follow the directions provided by the Knifty Knitting Looms. These can be bought at any craft store.
Here are some of the ones that I just donated today!
Let me see some pictures of your hats!