Set up a table with craft supplies and let the kids create their own outrageous toppers.
Start with either a cone-shape hat or the classic pirate hat (instructions below), then build from there, gluing ornate ribbons, pompons, streamers, and glitter designs. Roll up thin strips of paper to make curlicues, or cut fringe out of colored foil paper, and attach them with stickers or tape.
CONE-SHAPED HAT: Roll a large square or rectangular piece of paper into a cone, staple the sides, and trim the edges for an even brim. To make a shorter cone, cut a semicircle with a diameter of about 1 foot out of a piece of construction paper. Holding the paper at the midpoint of the straight edge, fold the semicircle into a cone. Staple the ends and trim around the brim. Punch two holes on opposite sides of the hat, and thread a piece of elastic cord through the holes for a chin string (you
PIRATE HAT: Fold a large rectangular piece of construction paper in half by bringing together the shorter sides. Turn down the corners along the crease so that they line up (a la paper airplanes), then individually fold up each open edge to create the brim. Make a chin string by punching holes on each side of the hat and threading a piece of elastic cord through the holes.
As a finishing touch, add feathers, pipe cleaners, or any other odds and ends -- the wilder the hats, the better.