I was thinking of putting stuff on wreaths. You can get a bunch of inexpensive green fake wreaths and a bunch of holiday picks, a few hot glue guns and let those kids go to town. Give them some bows or even some ribbon...then they get to display their wreath for their families.
You can also make cranberry garlands for trees or snowflakes for windows.
I like the cookie idea Hooch. Here's what me, my husband, and our friend David (who lives about 3.5 h away) do: we each get a few cookie recipes, then we get together early in the season (end of November or beginning of December) and make a million types of cookies in small batches. Then we pick the best recipes and later on, when it's time for gift giving, we make our favorites. It's a really great way to try out cookie recipes before you make them for people...once I didn't try out my recipes and I had to throw out about a third of the cookies because my lemon cranberry ribbons tasted horrible (just HORRIBLE).