What about having a dessert gift exchange stealing game? Everyone brings a dessert they would love to eat themselves.
There are tons of recipes for all kinds of desserts online. The gag gifts could be "interesting" or really "different" desserts that may not be everyone's cup of tea. I think there could be some fun in tasting the different desserts etc.

I forgot to add that the gag gifts could also be botched recipes or interesting ingredients that were switched or added.

We did a "dollar store" gift exchange once- it was the stealing type, like you described. We had a blast stealing gifts, no one really cared what they ended up with, we just had a good time stealing them from one another.

Set a strict $5 or $10 limit. Have men bring men's (or neutral) gifts, women bring women's gifts (or neutral). Maybe have someone creative make a list of ideas for gifts.

Group gifts, or even gifts, in general, can be not-so-useful for a lot of people. How about pooling everyone's money together instead, to give food or clothing to a needy family, donate to a food kitchen, animal rescue, or some other charity. Donations are down when the economy is, so it's a good time to remember them or those who are very much in need. You could set up a drawing to pick, toast, and sing a song to the winning charity, or something like that.

Do a white elephant or under five- this is what we do each year at our church Christmas party. Each person brings a used but no longer needed NICE gift or a brand new gift costing under five dollars. Most of the used gifts are nice and better than something cheap though brand new. Those who buy things sometimes do things like 3 giant Hershey bars wrapped together.
Some things I've given that I didn't need or use: stainless steel tea pot that didn't match my new kitchen (still had tags), huge metal unused tool box, wool scarf not my color that I never wore.

Our office did the "stealing" game gift exchange with food only items. Candy, bread, coffee, BBQ sauce, etc. Useful, cheap, and people get pretty excited over stealing their favorites. :)

Great ideas! I especially like the 'food' idea and think that would go over well with this crowd.

There's a 'stealing system' I learned from Lowspark that could be great here. I'll explain in case others find it useful. (And Lowspark, correct me if I get it wrong!)

1) Everyone brings a gift and draws a number.
2) There are two extra gifts under the tree provided by the hostess.
3) Number 1 goes to the tree, selects a gift and opens it.
4) Number 2 goes to the tree, selects a new gift and opens it.
5) Number 3 goes to the tree, selects a new gift and opens it. (No stealing yet.)
6) After everyone has gone through, the remaining two gifts are put on the table in the center.
7) Number 1 then has the opportunity to exchange his gift. If he does, he puts it on the table, then chooses either of the two unopened gifts or steals one from someone else.
8) If #1 steals, the 'victem' then gets to steal from another player or pick from the table. If he chooses from the table, the round is over.
9) If the victem steals from another player, the new victem then has the same opportunity -- steal and keep the round going, or choose from the table, ending the round.

10. If the second victem steals from another player, that third victem must then choose from the table and the round is over.
11. Then it's Number 2's turn -- Same procedure.
12. There's a maximum of three thiefs and three victems per round, with the third victem required to choose from the table.
13. Each gift can only be stolen three times.
14. Every player has his turn at the exchange and there's LOTS of stealing! Since there's so much thieving, it's pretty rare for someone to end up with something they don't like.

Those stealing games are a riot...especially if it's a good white elephant. One year we had a party at my bosses house and I brought a HORRIBLE beer mug my MIL gave my DH. The handle was a naked woman, so you can get an idea of how tacky it was. Well, let me tell you, that stupid mug was the focus of a BIDDING WAR!! My DH wanted it back after he saw how coveted that stupid thing was.

More PG rated white elephants at work have always been a hit.

We've done the stealing game coupled with an ornament exchange -- it's always fun to see which ornament becomes THE one to have.

Good write up of my rules, Sweeby!! Only one thing, I don't limit the number of times a gift can be stolen overall. It just can't be stolen back within the same theif-victim round.

I came up with these crazy rules based on playing many times. I call it the Greed Game because that's what it was called the very first time I played it many many years ago. That time, the game had a sort of moderator, the host of the party, who didn't participate in the giving/stealing, and instead set rules and picked on people as the game progressed. He had a great personality and the game was so much fun as he manipulated us in our picks and steals, etc. It was a party given by my then husband's boss and he only worked there through one Christmas so we never again got to go. Oh well!

Anyway, what I've found is that there is a certain thrill to opening up a new gift. The only problem with that is that the point of the game is to STEAL. If too many people open new gifts, there's not enough stealing. On top of that, if you're among the first few to open something and it turns out to be something, well, crummy (to put it bluntly), then you are stuck sitting there the entire game while others open and steal. You have no hope of being able to participate further.

My method lets everyone open a new gift AND have an opportunity to steal. If there are crummy gifts, well, sorry, but someone will still end up with them. But at least everyone has fun playing!

Sweeby, I like the food idea. It's a good way to keep the price low and still have an opportunity for creativity in gifts. You could open it up to either homemade or store-bought.

We do a similar gift exchange, but all gifts have to be 'regifts' -- you aren't allowed to purchase anything new.
Fun, cheap, and you can get rid of a bit of clutter.

My family is not into the stealing version but trading is allowed.

-Lena

Flower bulbs would be ecconomical. Split up one of those big bags from Lowes to create smaller presents. In the spring when the flowers bloom. and every year to come, it will be a great reminder of Christmas.

Perhaps you could do a Christmas version of what has become a Halloween party tradition in my neighborhood. Here's how it works at Halloween (of course, it would need tweaking for Christmas!):

First of all, it's just a big ol' fun party. People bring food and drinks, and it's basically a good excuse to get together for fun and fellowship. Everyone brings a pumpkin and a check made out for $20, with the "Pay To The Order Of" section left blank. The party takes place outdoors, on a street with a hill that is blocked off by barricades at the bottom (they even get a city permit to do this!), and there's a pumpkin rolling contest. The person whose pumpkin reaches the bottom of the hill first is the winner, and that person gets to choose the charity that all of those $20 checks will be made payable to. It's loads of fun, and the bottom line is that it also benefits a very good cause.

Just an idea - in case you wanted to try something a little bit different!

Awesome idea, AJ!

LOL, that is so cute Jen!

What about can rolling contest with cans going to the food bank? Maybe rolled down an incline or pushed along an obstacle course with golf clubs.

Little OT: I've done "turkey bowling" for T-giving. The pins were cans and the winner got the turkey. Different marks on the floor told people where to bowl. Some were funny like a close line for bald headed men, more than 5 grandkids, ect.

An ornament exchange sounds fun to me. Although a re-gift party would be helpful... anyone want a set of poinsettia oven mitts? LOL

Love that idea AuntJen --
But what I wouldn't give for a HILL! Maybe we could use our next door neighbor's new putting green?