At my Kindergarten, I respect that a lot of families may not feel comfortable with purchasing a whole album of pictures... so take plenty of individual/group shots with my DSLR during the year and give them to families on a CD/DVD in December.

For privacy reasons, only photos of each particular child can be included (but I have a disclaimer on my centre's privacy form at the beginning of the year explaining about it). On the whole, most families love the idea - especially when they get ~150 pictures at the end of the year.