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My kids' school does the Santa Sale at Christmas, where all the kids shop for their parents/sibs/etc....
Like Aclee suggested, we take recycled Christmas cards and make gift tags, then send a bunch home with each child, so they can write the names of the people they are buying for, then bring them to the sale to tag the gifts...
As for the rest (Christmas and other holidays, or days in general), we give half to the preschool/kindergarden room so they can make cards for whatever holiday/special day comes around, then the rest go to nursing homes where they do the same thing...
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