My family once had everyone (adults and kids) bring in a small gift, not wrapped, valued between $1 and $5. We divided into groups of about 10, with one person holding a bag of small items.
The person holding the bag would call out two letters, say A and T, and then pull out a gift. The first person who could come up with a reasonable name for the object using words made with those two letters got to keep the gift.
For example, if the person pulled out a small doll, one could say “adorable toddler” etc.