Mushroom Top
This is one mushroom dish no kid can resist. The children should stand at approximately even intervals around the parachute. The bigger the parachute, the more kids it will accommodate. Have them get a firm hold on the edge of the parachute, which shouldn't be too taut. Then have them lift and lower it in unison, building up to a count of three. On "three!" the kids lift the parachute high above their heads, dash underneath the resulting billow and pull the parachute behind their backs.
Popcorn
This simple game is great for the preschool crowd. Have the kids circle around the parachute and grasp the edge. As they hold it about waist high, the teacher or leader begins tossing light plastic or foam balls onto the surface of the parachute. Have the kids make erratic waves with the parachute in order to "pop" the balls up and down as if it's popcorn in a pan. More and more balls add up to more and more fun. For a twist, have a few kids go underneath the parachute and try to knock the popcorn out of the "pan" while the crew around the edge tries to keep it in.
Rollerball
This one's a little bit tricky. The kids round up around the parachute and hold it taut at about waist height. Then the leader or teacher puts a beach ball on the parachute near the edge. The person adjacent to the ball lowers his section of the chute to make the ball roll in front of him, then raises it as the next person lowers, creating a wave effect along the lines of the popular move crowds do in large sporting arenas. With this game, however, the players are trying to raise and lower the parachute in order to move the ball in a smooth circle around the perimeter. Once the group gets good at the game, they can speed up or reverse the ball's direction for more of a challenge.
SHARK!
Some call this fun and scary game for kids "Jaws!" The group sits around the parachute, holding it chest high, with their legs stretched out beneath it. One person starts out as the shark. As the group gently flutters the parachute to make a ripple effect, the shark crawls underneath in search of a victim. When she finds him, she gives his ankle a surprise grasp, which may indeed elicit a hair-raising scream. The victim then joins the shark, and heads beneath the depths to become a shark and find a victim of his own.
To prolong the game, start out with three or four sharks and have each one emerge after besting their victim.