For a small gift, such as jewelry, you can use a scarf, or, as in this case, a handkerchief. For those of you who live in Birmingham, I bought this handkerchief at Smith's in Mountain Brook.
Lay your gift like so:
Fold the 2 outer corners, one at a time, toward each other on top of the gift, and tuck them over it.
Bring the bottom corner up and then the top corner and tie a bow to secure it. You could also secure this with a vintage pin or a pin with their initial, or buy a handkerchief or linen hand towel with their monogram on it. (Smith's also has monogrammed linen hand towels.)