She said Wacky Warm Ups had seven members, but others had noticed them at the library and wanted to get involved.
"It's quite amazing. In such a short time people have become very interested in it. It would be great if it could be an ongoing thing.
"There are people and kids out there who don't have a lot."
Shepherd said people could go along on Mondays or they could make items and donate them to the group.
"I just think it's a thing of awareness. We are going to try this approach to giving people something that's absolutely new for them."
Co-organiser Jane Fear said the group started because Shepherd approached her and said she would like to knit hats for the homeless.
Fear said they decided to go bigger than hats and beyond the homeless, and decided to make anything to keep people warm.
She said they do mostly knitting, but also crochet and weaving.
"We share wool and needles, and once the garment is finished put a nice label on it with a Wacky Warm Ups sticker, put it into a brown paper bag, and will distribute via people like Love Soup and St John."
She said the response from library staff had been positive.
People who had approached them at the library included those interested in learning how to knit, and the group was happy to teach them, she said.
Sandra Quinn, Rotorua Library communications co-ordinator, said it was fantastic to see people using their own interests to help others, and in turn to encourage others to do the same.
"Wacky Warm Ups is such a good idea as there are just so many benefits.
"It's a lovely social occasion for the group, the group can share their expertise and teach others, and the woollen creations are given to people in our community in need."