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Love the reusable shopping bag idea- my school has started using those for its events and they are cheap, easy to personalize, and everyone has a use for them. Plus they're great to have at conventions or events when you're away from home so you have a handy place to put all your miscellaneous things.
Things to avoid: candles, pencils (most people use pens over pencils), anything that might trigger allergies, knicknacks (like snowglobes or ornaments), long lanyards, bookmarks, and other things people are likely to leave behind.
A key fob could be nice if it's in metal or leather- I don't like cheap plastic ones but a nice, well-made one would get a lot of use. Same for pens- most pens you get at events are cheap but they do make really nice ones- I got one at a conference that is metal and writes better than any other pen I've had, and it is absolutely indispensable! I like the coffee mug / insulated tumbler idea too. Glassware doesn't seem to fare very well for older people (we always seem to have alumnae bringing back old formal and convention glassware that they want to get rid of) but mugs and water bottles (nalgene or sigg type) would probably get more use. You could also present them in a nice way, filled with M&Ms or with a few sticks of rock candy and a pen stuck in.
Good luck!
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