I have lots of fabric scraps from making Me and Lulu bracelets. So, I decided to use them recently as part of gift wrap! I bought 10 small craft bags for $4.99 at Hobby Lobby. I then grabbed about 10 matching scraps, ripped them into scraps and tied them onto the bag.
To make it more personal, I used remaining fabric to cut out the letter of the recipient's first name. I just draw a block letter (think junior high doodles!) and then cut it out. I used a black sharpies to make a dash outline giving the illusion that I had sewn it on. I then attached the letter with glue dots from my scrapbooking supply.
Beyond birthdays, I think this would be super cute with Christmas fabrics and cut out a cross, Christmas tree, angel, ornament, etc. You could have lots of fun decorating!