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Another alternative to presents: Does the birthday child already have plenty of stuff? Here's an idea from a birthday party I attended.  
In lieu of presents for (your child's name here), we plan to play a present exchange game. If you would like to participate, please bring a modest ($10) present suitable for either a boy or girl, ages (within a year or two of your child, for example "4-6.") We will play a musical chairs type of game, and each child will leave with a present different from the one he or she brought. (Thanks to Caren Cooper for this idea, and Diane L. Tessaglia-Hymes for the text.)