We did this a while back. We designated a space for each person (a plastic pencil box--we had too many), put all of the art supplies on the table, then everyone chose their favorites until the boxes were full. We had a different bin for construction paper, stickers, glue sticks, etc. that my now older children sometimes use for school projects.
Everything left was donated to social services/CPS to give to children during the intake process. The social worker cried when she received everything, including unused coloring books, books, unopened crayons, markers, paper, pencils, etc. It filled up the back seat and floor boards of my friend's 4 door sedan.
Um, did I mention we had an art supply problem?