What we sort of do for families in my daycare having a baby is we all do something together. I usually buy something like a basket or pail or bin of some sort and then all the families buy things to go in it and we present it to the family. Basically what happens is they take their own kids shopping to buy a gift for the baby so it is mostly the small carded items like teething rings, squeaky toys, etc. But it also lets all of us off the hook at the same time. I sort of see what is put in the bin and then add accordingly from what I know about the family ie need the basics due to finances, have everything so frills ok, what mom used on older child.

I also offer free childcare on the days mom is in the hospital - up to a week as my gift. Not all take me up on it as they have relatives coming but it is always thanked as a great gesture.