A quillt is a very cool idea, but pretty labor intensive. What age-range are you working with?
A coupleof thoughts:
1. Ask everyone to bring in a square of fabric and then enlist the help of other adults to help create the quilt and help the children learn the various steps.
2. Make a paper quilt! Ask every student to write or draw something from the story, or something they can share, on a piece of construction paper. Use lots of colors! Then use a paper punch to punch holes around all four edges of each piece of paper. Lay out the papers in a pleasing pattern, and have the children use bits of yarn to "tie the quilt". Various yarn colors will make it extra-colorful! This can then be hung on a wall and displayed for all to see. You could even have the children use paint and put their handprints on the pieces of paper- call your quilt the SHARING HANDS QUILT.
I hope that helps!
Blessings
Jan S