In the past for Kindergarten parties we have done similar things. We always compiled a list for the parents and assigned the items that we needed so that we would have enough.
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Cookie decorating- parents supplied the sprinkles, frosting and sugar cookies. We passed out plates with the frosting on it with each one having a cookie and plastic knife. This way the kids can have their own frosting and no sharing while licking!
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Craft-some great things at oriental trader that are priced in bulk.
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Mini Gingerbread houses- we collected the milk cartons from the cafeteria. Parents donate Graham crackers, frosting and assortment of candies...same plan as the cookies so no sharing of germs

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Candy Cane reindeers- Take Candy cane and glue 2 squiggly eyes, red pompom nose and brown twisted antlers to make Rudolph..kids love em!
We also did the book exchange and set a limit on the amount that the book could cost.
One great idea that my kids have all done, even DS25 when he was in Kindergarten was in a station have green and red fabric paint and either white material or burlap material cut into about 12x12 square. Each child has their hand painted and with the help of an adult places their hand around in a circle to form a wreath (the fingers are pointing outward) and take their finger and place into the red and make holly on the wreath. Write the childs name and year and its a gift for the parents!!
Another fun thing is to take the childs foot and trace on the material ( with the shoe on) then have them paint it brown. Place paint on the palm of their hands and place on each side of the shoe tracing. THis makes a reindeer with antlers. Take thumb in red paint to make the nose, and black fingerprints to make the eyes....these are so cute and parents love them!!
Have fun and enjoy the season!!