[littlesquirrel]

My chapter does hanging letters. Cut out letters from cardboard (they turn out nicer if you have double-sided ones, so two sets of letters), add some sort of padding/stuffing, cover that with fabric with your little's favorite fabric, and run ribbon between the two sets of letters so they can hang.
Also, as a new member, she'll probably get a lot of gifts and a nicely decorated container for storage would be wonderful.