We've been giving books to DD's daycare buddies this year - they're relatively inexpensive (my non-family gift budget is more like $15 or less per kid) and allow parents a much-appreciated respite from another toy they have to find a place for.
The kids may not appreciate it immediately, though, but we are thankfully not invited to many parties where the birthday child opens presents.
And we always give gift receipts, just in case.
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Liz
DD (3/2010)
"Make mistakes! Get messy!" - Miss Frizzle