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We're not religious by ANY stretch of the imagination (in fact, I consider myself an atheist), but we do the Xmas/Santa thing for the kids. Put up a tree and all that because it's fun for them. Our gift exchange is kept to a minimum, though. Like, my wife and I exchange ONE gift. And the rest of our family just gets presents for the kids. The rest of it is just getting together and having a big meal and watching "A Christmas Story" on TV. But I do hate all of the hoopla surrounding the holiday and how earlier it's starting these days. I just try to ignore it as much as possible, like I do with about 90% of the rest of annoying popular culture.
Joey mentioned the Salvation Army, and I wanted to add that there are MUCH better charitable organizations to donate money (such as the National Coalition for the Homeless or your local foodbank). DON'T give to the Salvation Army. It's run by an evangelical church and won't assist everyone—only those they deem sufficiently worthy (they are vehemently anti-gay, for example).
"Go read a book and flunk a test." -Iggy