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We celebrate at afternoon snack with a special treat with candles and a present from me. I decorate with balloons and that's about it when they are small. When they are 4 I make it a very special day and let them choose all the food and wear a special hat or necklace all day because it is their ME day.
I don't do too much either. I do make cupcakes for the afternoon snack though. This year I made little party hats for them to wear and I buy them a book for their gift. I also, have 3 kids who bdays are at the end January that are within a week of each other so we do one big celebration. Then my own son's bday is on Valentine's Day, so I do his at the same time as the other 3 so we can focus on V-Day and I'm not making a tonne of cupcakes.
My two other dck's bdays are in September and are two weeks apart, so I will probably just do the same thing as I do in January and do one big party for them.
I encourage parents to send a treat for everyone, we have their favorite lunch that day and that is all! I don't think it is fair if a child has their birthday on the weekend and we miss it while other children get a big fanfare!
Robyn, if a child has a birthday on a day they aren't attending daycare I always celebrate on the day before or the day after, but I would never let a child miss out on their special celebration.
I make cupcakes/muffins for the child and sing happy birthday. I also buy a small present that I send home with them at the end of the day. I do not go all out, as I feel that is the responsibility/decision of the parents, to have a birthday party for their child.