they could make candy cane reindeer by twisting a brown pipecleaner around the top of the candy cane for antlers and adding googly eyes. Or they could make reindeer pins our of puzzle pieces. I don't know how much time you have, but you could make gingerbread houses or decorate sugar cookies. Another fun thing is to fill a brown paper bag with straw/hay and include instructions to put the straw/hay out on christmas eve for the reindeer! They could make Snowman Soup (all it is is hot chocolate): put hot coco mix, mini marshmellows, and a candy cane in a little bag. I have the poem that goes with it if you want. A really quick craft is beaded candy canes. Alternate red and white beads on half of a red pipecleaner, bend it like a candycane, and add a bow. You could have everyone make certificates for taking out the trash or cleaning their room, etc. to give as gifts.
I like the idea of making ornaments, I have made cinnamon ones and they are great because they smell so good!!!!! Hope this helps!!!