Just found this thread in my search for grab bag ideas. Since it's a couple of years old, I wonder if anyone else has insight into leads for items to include?

Update:
I just got 250 coupons for free ice cream at Dairy Queen. I lucked out and found the person in charge of them for our area.
We will be getting 250 2 week or 1 month memberships certificates from different health clubs. Most of them are donating a larger member ship for the auction as well.

Several direct sales people said they would donate to both the bags and the auction:
Tuperware
At Home America
Home and Garden Party
PartyLite
Mary Kay

I have also been looking in the add booklets to see and calling anyone who offers anything free without purchase. Some people aren't getting it that it's a good deal to donate a coupon for free stuff to us rather than pay through the nose for an add to do it, but most understand.
Unfortunately, it takes it bit more turn around time for this.

Tammyd, thank you. Dr's offices. That's an excellent idea. My son's pediatric dentist had the coolest toothbrushes. I think I'll look him up....

Nonsequitur, we asked our Dr. offices if they had samples and advertising items from pharmacy firms. We received boxes and boxes of letter openers, note pads, pens, pencils, water bottles, key chains, and more. A few of us asked our OB-GYN for the diaper bags or books they give to new moms. We got so many items that we were able to create complete "New Baby Shower Gift" baskets.

Congratulations on your new baby!

I know there are a ton of government labs and facilities all over the west. There are signs along the freeway. That's how I found the last visitor's center.
I talked to the school and they didn't know about that one. Maybe it's just dumb luck.
I know there are things in Estes Park, Ft Collins and Denver, Colorado, and in Idaho Springs, Idaho (INEL). Anything that's educational will have something geared to kids. I think I even saw the national park service giving out stickers and books about forest animals. Oh, I think they still have items from Smokey the Bear but I forgot to order those. That's something for next year, I already have a ton of paper items.

Kmamom, you're in NJ? I have some information I wanted to give you, but there's no email address that I could send it to. This isn't a sure thing so I don't want to post it. Would you email me, so I can send it to you?

Nonsequitur--you are truly something else! Government testing labs!? WHERE do you find those? I'm in Jersey--are these labs somehing more in the DC area? I'm getting totally psyched to make the grab bags for our fundraiser!