These treasure stones found over at Sew Can Do are just TOO COOL! What a great gift activity. They would make excellent party favors for a dinosaur-themed party and the kids can help make them.

In addition to tying, you can sew reusable cloth gift bags for your friends and family. They can reuse the bags as totes or gift wrap. Christmas fabric looks very festive for the holidays and other prints can be used year-round. Check out these cute bags available from Lucky Crow or if you're handy with a sewing machine, make some of your own! Sewing bags and flat pieces of cloth for wrapping is great practice for kids just learning to sew.
Do you have any old canisters? It's easy for kids to make these beautiful recycled gift cans using paper, glue and a little bit of ribbon. These handy cans can be reused again and again. Head on over to Crafty Nest to see how to make them.
Instead of buying plastic made-in-China bows this year, why not make your own gift wrap bows? Check out The Hybrid Chick for directions on how to make this easy craft yourself from wrapping paper, felt or recycled materials.
Here's an oldie but goodie from She Knows Parenting. Wrap gifts using 100% recycled butcher paper or brown paper grocery bags. Use homemade stamps to make your own prints.
If you are looking for a beautiful and unique gift, try making one of these simple CD clocks. Kids can purchase the clockwork kits in almost any craft store and most are very simple to put together. Kids learn about recycling and reusing as well as how clocks work and how they are made. This awesome find came from In the Know. They also have lots of other fantastic ideas (awesome lamp, anyone?) on other ways you can reuse those old CDs rather than send them to a landfill.