Inspired by the pup tent pattern in Weekend Sewing by Heather Bailey, I whipped up a pup tent as a gift as a birthday gift for a friend's son. I used a spare twin sheet then added loops of coordinating bias tape as suggested in the pattern. I bought tent "stakes" at Lowe's - galvanized barn nails. They're cheaper than knitting needles and they won't rust. (For obvious reasons I didn't put those in the bag. I gave those to his parents.)
I used an old curtains package to hold the tent and rope. Then typed up some simple instructions and made the "label". A fun, homemade gift that didn't break the bank and encourages imaginative play - that's an all around great gift in my book.