We raised a lot of money we donated to a food pantry by dressing up wooden spoons-so much fun!
Got a bag of fabric leftovers from a parent as well as yarn. Colored face features with markers -though some kids insisted on using googly eyes. I used a hot glue gun and had the kids come to me for that. The wood spoons are cheap-I have not done this in awhile but it is still a good fundraiser.
I haven't tried to sell these-but an activity I did with my own family is taking wood chairs off the curb that were left for the rubbish and gessoing and painting over them-very cool project and the chairs are free.
In Boston we have "First Night" celebration in the city on New Year's-the leftover button pins seem to end up in the Boston Childrens' Museum recycle center- a teacher can fill a large brown bag with anything there for $6. One fundraiser I got hundreds of these button pins (several inches round), gessoed over the them and the kids painted their own deisgns on them-added sparkly stuff, pinned them on an index card with their name and a message-sold them for $2 each-had no leftovers.
Check the recycle centers for reusable ideas. One teacher has a business of her own, recycling old sweaters, she boils and felts them and adds applique stuff and makes winer mittens-they are gorgeous. I do not sew but here's an idea you might use if you do sew and f you live in a cold climate-can you believe it's snowing right now in Boston and it's only October!