How do I incorporate a small charity that doesn''t make money? Do we have to become a 501c3 non profit organization too?

My child started a knitting charity to make scarves & hats for the poor. We were told we should incorporate to avoid potential legal issues. Our organization doesn''t collect money. We collect yarn, finished hats, etc & donate them to churches, etc. We have been making branches to our organization across the US to further our reach. How do we incorporate? How much does it cost? Is there someone willing to do it pro-bono since we are not funded and are so small? Should be also become a 501c3 or is that not necessary since we don''t accept money? What is involved with both scenarios? Thanks.