I've made all sorts of stuff for gifts over the years,
- picnic basket (wine, olives, spreads, etc. w/gift card to local grocery store to pick up perishables)
- quilt
- embroidery hoops if I find something the recipient will really like
- sensory baby books
- spa box (sugar scrub, lotion bar, wine, candles, etc)
- useful things with my sewing machine (T-top covers for my husband's car)
- homemade clothes for kids, usually specialty items that I could make cheaper
- embroidered ornaments
- scarves
- freezer meals
- vanilla
- Panettone bread or other breads
- cookies
- homemade liqueurs w/summer herbs
And then there's always the gift of time. Babysitting, house cleaning (new parents, upcoming surgery, etc), cook them a meal, etc.