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Hi Karen,
Here are some ideas from Pinterest.
https://www.pinterest.com/explore/receiving-blanket-crafts/?lp=true
One lady I know sewed a bunch of them together and used a plastic shower curtain as a backing to take to the park. Another used as cleaning rags, and yet another pieced out the good bits for a quilt.
Donations to animal shelters for those not in the best condition, to charities that deal with abused women who often have small children for better ones. For really special ones, pillows for the child's bed, fabric for quilt tops, or fabric for stuffed animals Use a REALLY special one as the background for a shadow box with momentos, and list the source on the back for each treasure. You could give a quilt made from several to the child at the time of the birth of his or her first child, if you have room to store it for years.
If they are cotton flannel, use them as towels for your toddler.
I made cases for my designer hand bags with the thin flannel blankets.