No more paper napkins!
Depending on the width of your fabric, you can easily make napkins of any size. No sewing required! Cotton or cotton blends work the best. With your length of fabric the long way, fold it in 3rds or 4ths (depending what size napkins you want) make a snip of 1/2 inch on the fold, then rip it! Ripping it will make fringing easier! Now you have 3 of 4 strips of fabric, measure or fold to make squares, snip and rip. Then start fringing the edges, (you may have to rip off the selvage too) fringe in 1/3 of an inch on all 4 sides so it won't fringe more.
It's easy to do while riding in the car or watching tv.
Wash, fold and they are ready to use!
Cut out the neck, a bit deeper or almost to the arm pits, cut off the arms- you can leave the stitching around the arms if you want, but the knit fabric will hold up quite well if you don't. Turn inside out and sew across the bottom to close it up- and you have a bag! (Alternative to sewing would be to cut 3 -4" slits and tie the bottoms)
No more wrapping paper!
Make an assortment of different sized fabric bags, tie them with string or yarn or add a ribbon. The only problem will be that the people will keep them to reuse them so you will have to make more! Helpful hint: shop after a holiday and get fabric really cheap for the next year- or be sure to check the remnants!