Depends on the size of the gift but if there is enough money and enough time, I like to wrap a gift in a gift. I've given lots of things away tucked inside totebags, placemats, and pillowcases.
When I give something small and flat, like tickets to a play, or a gift card, they can be wrapped in photo albums, gloves, socks. I once gave cooking classes to a friend and wrapped the certificate in an oven mitt.
My husband has gotten into the habit as well. He gave me a pearl ring in a soup tureen and diamond stud earrings in a tea kettle.
Just make sure you are there when the person opens the gift so that they get ALL the gifts!