Measure the bird clip art and add 6 inches to each side. Cut the cream print fabric to this size.
Following the transfer paper manufacturer's instructions, center and transfer the bird clip-art image onto the cream print fabric.
Cut the fabric out approximately 1 inch around the bird, using the outline of the bird as a guide for the shape. Cut out a matching back from cream fabric.
Sew the bird transfer and the matching back together with right sides facing, leaving a 2-inch-wide opening along the side.
Turn the ornament right side out through the opening and stuff the ornament with polyester fiberfill. Slip-stitch the opening closed.
Use fabrics glue to attach red trim to the edge of the ornament. Cut a 6-inch-long piece of trim or string and shape it into a loop; hot-glue it to the top of the ornament for a hanging loop.