Another great thing about arts and crafts parties is that each child gets to go home with something. You don't need to give out party favors that -- let's be honest -- will likely wind up lost or in the trash within hours of the party. Instead, the children will bring home something they're proud to have made themselves.
Keeping that in mind, make sure you choose a craft that will be ready to go home at the end of the day -- nothing that takes all night to dry or set. Make it extra-special by placing each child's creation in a personalized paper bag, tied with a festive ribbon and a lollipop. Decorate the bag with ink stamps or stickers to match each kid's personality. Or check out some of the cute take-out containers carried at many local craft supply stores. Do you have a lot of old fabric lying around? Wrap up each creation in fabric and tie the top with a ribbon.