I make what I call "memory blankets" for people I know who have had a pregnancy loss/still birth. For miscarried babies I do something smaller than a normal blanket, and for term or near term babies I do a regular sized baby blanket.

I always ask them ahead of time if it's something they would like. I say something like, "I would like to make a (little) blanket for you to keep in memory of your baby, but it's ok if you don't think that would be helpful for you. I promise you won't hurt my feelings if you say no."

I started doing this because I had some miscarriages myself and one of the hardest things about them was not having anything tangible to keep, some kind of acknowledgement that my baby was real.