Maybe have a(n) (optional) food drive instead of a gift exchange?
My small quilting group exchanged those types of gifts for many years - as nice as some of them were, they are actually clutter for me now.
I am old(er) - so that may be a lot of where I am coming from.
I have actively disliked "holiday gift exchanges" for work or organizations for as long as I can remember. In my opinion, they are just one more source of stress during the holiday season.
We did a "clothing drive" for a pregnancy/family organization at a Christmas cookie exchange at the RV park a couple of years ago instead of exchanging gifts with one another. I really liked doing that. Participation was optional.
But - this may be a long-standing tradition that you wish to continue - so I hope you come up with something that you are comfortable with.