Create a graduation ceremony to celebrate the kindergarten class students' transition into first grade. Have students make mortar boards for the celebration. Students can march down an aisle as parents and loved ones watch. Make diplomas to present. Make the diplomas look official by including the school's logo, the teacher or principal's signature and a gold seal. Have special music and a message from the teacher and the principal.
To help highlight the progress students have made since they first came to kindergarten, have an art show that displays student's work. If possible, display a picture created by each student--one from the start of the year and one from the end. Alternately, have students draw a picture of their favorite memory of kindergarten or what they are most looking forward to in the first grade.
Throw a reception for graduating kindergarteners. Invite parents and other faculty to the event. Serve cookies and juice or go for a healthier fare and offer a fruit or vegetable tray and water. Display students' art and science projects for parents to see. Decorate the room in school colors with simple streamers. A graduation appropriate favor would make a nice gift for each student to take home as a reminder of the all important event.
Create rewards and certificates of appreciation to present to students and faculty that you want to thank and recognize at the end of the school year. To prevent hurt feelings, create a reward for every student. The rewards can be unique to each students strengths. For instance, one student might receive "The Best Joke Teller Award" while another might be granted title of "Student with the Best Attendance." Other rewards could include recognition for being the best listener or best citizen.