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My 2 year old loooooves glitter glue.

As for organization, I got a three drawer plastic storage thingy (like 2 feet high by a foot wide/deep) and keep things she's currently into in there. The rest goes in the basement in more tupperware storage things and is rotated in.

I don't know how old your kids are, but for my son's easter basket, I have done in the past:
Crayola airbrush machine
Crayola cling maker
Crayola spirograph
Spin art machine

We are craft people over here and my girls are the same age:
Do-A-Dot Markers
Crayola paints
multi-packs of construction paper
fun scissors
window cling maker (we found a kit at Walmart)
fuzzy balls / googly eyes
beads - we use for bracelet/necklace making

I have a three tier cart from ikea that rolls. The top tier has a caddy with pens/pencils/glue stick/ markers/ and a separate crayon box with lid. The second tier has construction paper and stickers. The last tier has her coloring books, workbooks, dry erase board, etc. LO is 5 and she gets what she wants and needs and Mostly she puts it back. Lo2 is 2. He does make a mess occasionally but it’s not that crazy. I love that it rolls and we can put it away easily with guests. We do all of our crafting in the formal dining room (I know) but we can also take it to the playroom if needed.

my daughter makes art all day long. its a constant battle to clean it up but I swear she's at work for at least three hours a day when we are home all day and she loves it.

she has several different types of markers, colored pencils, and crayons. Scissors, glue sticks, regular glue, glitter glue, and tape (she uses a TON of tape- sometimes I get her a couple rolls of washi tape and she loves that too). she has a set of three plastic drawers- one has stickers in it, one has paints (like those dot paints, and water colors, she also has an easel with tempera paint), and one has different types of paper. She has a small bin with feathers, googly eyes, pipe cleaners and sequins. She has a magazine holder with coloring books but she really only gets these out if I suggest them. She definitely prefers open ended materials.

I really only add to it maybe once or twice a year- a new book of stickers, new paper, new markers when they run out. She loves have a space to herself where she can create. I do keep loose glitter and beads out of reach.

She also keeps a big gift bag FULL of what she calls her "supples" (this is basically garbage: old photographs, tissue paper from presents, scraps of wrapping paper, some recyclables, etc). She's limited to what will fit in the bag...

for more organized crafts (like ones that I initiate) I keep nicer watercolors/water color paper, kite paper, tissue paper, and wool roving. I'm also a sewer so we have a lot of fabric and thread around.

@looch: we use it to make stars for the windows. the folding can be a little tricky, if she isn't feeling patient I fold and she glues. http://gardenmama.typepad.com/my_weblog/2010/01/as-the-snow-continues-to-fall-outside-of-our-windows-we-gather-together-at-the-table-to-create-waldorf-inspired-kite-paper.html

but we also use it for a variety of things- its slightly transparent. for a while she would make "sun catchers"- cut a shape out of construction paper, and then cut small windows out of the shape, and glue the kite paper to it to make a stained glass effect.
Its just another nice type of paper to have on hand.