Is a White Elephant Gift Exchange Right for Your Group?

A group of coworkers exchanging white elephant gifts.

(Image credit: Getty Images)

Planning a holiday party or gathering? A white elephant gift exchange might seem like the perfect centerpiece. But will it resonate with your group, or could there be better ways to create a fun and memorable experience?

When it comes to holiday party games, few are as widely known as the white elephant gift exchange. The basic premise is simple: Purchase something inexpensive that will get some laughs or head scratches when someone chooses the gift. White elephant gift exchanges promote light-hearted fun, especially in settings like the workplace, social clubs and family gatherings.

Not sold on the idea of a white elephant exchange? There are other creative ways to celebrate that can still bring holiday cheer to your group's gathering.

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Festive alternatives to white elephant gift exchange

Here are a few alternative activities that can make your holiday gathering special while creating connection:

Secret Santa exchange - Participants are randomly assigned to buy a thoughtful gift for a specific person in the group. This approach allows for more intentional giving, as it often involves learning about the recipient’s preferences and selecting something they’d enjoy. It still keeps an element of surprise but adds a personal touch that many find more meaningful.

Ornament exchange - Everyone brings an ornament to swap, either through a random draw or by assigning exchange partners in advance. In the end, each participant walks away with a charming keepsake to decorate their home for future holiday seasons.

Holiday donation drive - Instead of a gift exchange, participants contribute to a chosen cause or organization. This approach creates a sense of community, reinforces the spirit of giving, and supports those in need during the holiday season.

Pros and cons of white elephant gifting

Coworkers taking a selfie at their holiday party

Before making a final decision, it helps to weigh the pros and cons of a white elephant gift exchange.

White elephant gift exchanges can offer a great, stress-free way for everyone to be included and have fun, regardless of how expensive a gift they can afford. Additionally, this holiday party game is great for those who don't seem to need or want anything. The point is to have fun and laugh rather than feel pressured about buying something that most people will need.

On the other hand, some people don't enjoy exchanging silly gifts, especially when there's a chance no one will want any of them because they're items intended for laughs. Additionally, some people may feel awkward trying to pick out something for a gift exchange, and those whose gift is stolen might feel hurt. Finally, some people might feel like participating in a white elephant gift exchange is simply a waste of money.

Whether or not white elephant gifting fits your crowd, the goal is the same: to create moments of joy and connection. Choose the activities that best suit your group’s spirit, and you’re sure to make lasting holiday memories.

Holiday gift exchange deals

Setting a maximum budget for your gift exchange can help set expectations and keep everyone included. Tools like Elfster make it easy to organize participants, draw names, create and share wish lists and keep everything on track.

If you're celebrating remotely, platforms like White Elephant Online allow teams and families to join a virtual gift exchange and participate from anywhere.

A $25 limit is a common sweet spot for office groups, friend gatherings and family parties because it keeps gifting fun without adding financial pressure. Below are some retailer gift ideas under $25 to help you get started:

Jacob is the founder and CEO of ValueWalk. What started as a hobby 10 years ago turned into a well-known financial media empire focusing in particular on simplifying the opaque world of the hedge fund world. Before doing ValueWalk full time, Jacob worked as an equity analyst specializing in mid and small-cap stocks. Jacob also worked in business development for hedge funds. He lives with his wife and five children in New Jersey. Full Disclosure: Jacob only invests in broad-based ETFs and mutual funds to avoid any conflict of interest.