The basic idea is simple enough. Take whatever you would normally spend on each family member and apply that to a charity on their behalf. You spend the same as you would have on them, but without shopping for a perfect gift, or something completely useless they will never use. Why fight the crowds either when almost every charity has an online donation form. Of course this does not apply to our younger family members, they will still get real gifts under the tree.
As for Julie and I, we also sponsor a family with a combined set of funds that we would have spent on each other. We do this through a local organization known as the Share Program. We get a family with a list of things they need, and we go shopping for them. We are allowed to spend about $60 per family member, and we have a blast doing it. The real joy for us is knowing we helped out people less fortunate than us both in our community, as well as outside of it.
I have some of my favorite ones listed on this page, but below are some others we decided to use this year.