Hi gossipgirl .
I was the chairperson of my kids playgroup many years ago now and did just that. I contacted all the local companies for donations and 95% of them donated. with the goods they gave us we used to have regular market stalls at our small local market. Great fun and we raised a lot of money for new equipment. All the other suggestions are excellent as well, so I would approach as many organisations as you can. all the Mums used to bake and make bread and we used to sell that for a regular little income.
Good luck xx