you bawled. Great! That means your passionate about this and you're going to make it work. And the good news is your daughter is young enough that this will be her way of life, and she probably won't react like he is. That was my experience, anyways.

Just giving him back his own toys should help immensely. It's really not fair to essentially take away what Santa gave him (as an example) and give it to another kid. It's his to cherish and play with. Santa (or whomever) have it to HIM, not to your daycare. He can decide when he's outgrown a toy and wants to "donate" it to daycare...