Supplies: Envelope (larger than the item(s) it will hold), paper cutter with scoring blade, decorative scissors, stamps and inks, hole punch, ribbon
Without sealing the envelope, make a cut along its length, leaving enough room in the body of the envelope for the item(s) it will hold. The smaller portion will become the lid and should have enough room for a ribbon to be added.
Open the flap of the body of the envelope and score it 1/4" from its current fold, toward the center of the envelope. This will change where you fold the envelope flap, making the "bottom" of the envelope slightly smaller than the "lid".
Seal the flaps to both parts of the envelope, using the new fold on the "bottom" portion.
Trim the lid with decorative scissors and add holes to feed ribbon through.
Decorate the envelope with stamps and ink. (For ribbon bow, cut ribbon about 2" wider than envelope, feed both ends into the holes from the front to the back. Cross the ends and feed back through the holes from the back to the front.)
Finished Envelope Gift Bag. For more great ideas, visit http://paperjewels.blogspot.com