Do you know how to make jam? You said that you have done baked goods in the past. I usually give my kids' school "people" (principal, librarian, etc.) jars of homemade boysenberry, raspberry, blueberry jam that I decorate with cute holiday fabric and a raffia or jute bow with a homemade gift tag. They love it, and have for the last two years asked if I will be doing it again!
People tend to appreciate something little to say thanks and Merry Christmas that can be tasted, enjoyed, and that doesn't clutter up the space. If you don't have time to bake or do "crafty things" then a $5 gift card to Jamba Juice, Starbuck's, or something that will get them a few minutes to enjoy the treat is usually appreciated.
I have done everything from homemade candles, bath salts, flavored oils to picture frames and baked goodies and jam. If you don't make jam, find a store (Cost Plus is great for this)pick up some packets of scone mixes and a sampler pack of jams and split them up between everyone. You can wrap them in a brown lunch sack that you have stamped, colored, or tied a colored ribbon around and give that as a small thank you. It really doesn't have to be anything big. Even a simple Thank You card is appreciated if money is really tight.
Maybe you have a store in your area that sells handmade items from different artists and vendors? Who says you have to make it yourself? We have a place in Fresno called The Palace Courtyard that is full of handmade items by various crafters/artists in the area.
Have fun, whatever you decide to do!