You can also purchase craft kits from Oriental Trading very reasonably. I don't know if they are available right now, but we always get a special catalog closer to Christmas.
Do you mind if I ask what you charge for your breakfast with Santa and how much you make off of your fundraiser?
As far as a craft...let's see, have you checked out some websites like Michaels.com or familyfun.com? Some of those places have sites categorized by age, etc.
We have held a "Pancakes with Santa" fundraiser for the past four years. We serve pancakes and all the "trimmings" in the cafeteria. In the gym, we have crafts for the kids. Every year, we have done wooden ornaments that the kids can paint and decorate. Last year, we added soap making and the kids loved it! I'm looking for a different craft to add this year! Anybody with ideas??? Thanks!