We have cut way back on Christmas spending. It was getting to where everyone was buying everyone else gift cards. It seemed rather ridiculous to exchange gift cards!
Now DH and I just buy for each other and our DD. DD is in college, so clothes, toiletries, a roll of stamps, ink for her printer, etc. are always appreciated. This year we plan to get her a digital camera too.
I give my mother a magazine gift subscription and make lots of things to put in her freezer for meals for her. She is 80 years old and hates to cook. She appreciates soup, baked goods, chili, etc. that she can just take out of the freezer and heat in the microwave.
My FIL is in the nursing home, so there is very little he needs/wants. He does enjoy going for a ride and getting some special treats, but that's about all we can do for him. We visit him every other weekend and always bring him some treat and usually take him for a ride. We live 65 miles from him, so we try to make it a special day when we go see him.
Since we have cut back on Christmas, we enjoy the holiday so much more. We do Secret Santa at work, which is fun. Other than that, I make cookie trays for some elderly people in our church and the Pastor and his family. We buy a poinsettia in memory of my MIL to give to her church. Those are the types of giving that make me feel in the spirit of Christmas.