I bring out the balloons for play. They love throwing them around the daycare room. It's also a great time to do colour games and count them.
For kids 3 and up I will do cupcakes, but for kids under 3 I don't.
I always send a gift home. 10 dollars and under for the little ones and for the ones that are 3 -5 I will sometimes do something closer to 15.00. Gifts are usually books, playdoh, something educational.
I wrap the gift and give it to mom to take home and open later. Opening gifts in front of all the other kids is just too hectic.