Can I politely return this gift without being rude?

My neighbors who I recently became friends with texted today and said "We want to gift your daughter a teddy bear. Can we bring it up and leave it on your porch?" So I said "That's so nice, yes, thank you!"

She put it on the porch and left because we're super sick this week. So when I opened the door, a bear that is literally the size of my couch was sitting on my doorstep. I have a 1 br apartment I share with my wife and kid. There's no room for this bear here. Plus my wife washes everything that comes into our house, and this thing is 3 times too big to fit in my washer. Is this the one situation I can politely refuse a gift?