My Mom for one of my birthday parties as a kid, did a scavenger hunt around the neighborhood. She got a few of the neighbors to participate, but then hid things in places like the mailbox or behind a specific tree. We did groups, and each team had a parent who followed them. It was timed (like 30 minutes, I think), and at the end of everyone got gift certificates to Baskin Robbins for the cost of a single scoop...the team with the most from the scavenger hunt list each got a small treat bag with school stuff...stickers, pencils, notepad...stuff like that. My birthday is in October and close to Halloween so, it the prizes were Halloween themed.
My Dad supervised the whole thing, while my Mom got out the Cake and Ice Cream and put the presents around the main table. If I remember correctly, we stayed on our block, and didn't cross the street.
A craft is a great idea, but that age is so funny...
Good Luck and have fun!