The Gift Ball is a great way to hand out the party favors and grab bags.
A parent wraps the party favors, in individual layers. An example would be, start with 10 starbursts (one for every child)wrap those in a tiny ball, with tissue paper or wrapping paper, then put a new layer of paper and the next items, put the original ball in the center and wrap, eventually you have a large ball with 10 layers of 10 items. Depending on how big it gets, you may need to use newspaper to wrap. Give the kids a loot bag (or make this the final layer), have them stand in a line the first child unwraps one layer, hands the ball over to the next kid, and hands out one of each prize to each child. Game continues until all kids get to open a layer and the ball is gone. To minimize cost or make it work for a big group, try a couple of smaller balls with a couple of lines, each ball has the same layers of stuff, just 5 instead of 10, or whatever. Kids love this game because they tend to feel left out during the gift opening stage, this way everyone gets to open, and have the loot. We have been using the gift ball idea for years and works great for young kids and preteens. My kids friends are used to them now, and if we don't do it they want to know why not.