For the orange party we had for the boys' birthdays I made some personalized canvas bags for loot bags. The whole project was very simple and turned out great. I forgot to take pictures of them all, but I did manage to get a shot of the one for my niece.
Here is what I did.
canvas tote bag (I had a lot of promotional ones that were too small for groceries)
material cut 2 pieces slightly larger than the size of the bag
contrast material (optional)
1. Measure the size of your canvas bag. You may wish to wash the bag at this point as it will shrink if washed later.
2. Cut two pieces of material slightly larger than the tote bag.
3. Add applique or other decorations as desired.
4. With right sides together sew around the sides and bottom.
5. Turn right side out and slip the tote bag inside.
6. fold over the top edge of your material a bit. Pin and sew it around the top of the tote bag. I tried to sew most of the bags right at the top edge but this material was a little short.