I have to disagree with you on the fact that you are not discouraging anyone from donating....that is EXACTLY what you are doing by telling ppl the kids listed on the tree are made up. Each organization does things differently, yes, but in all the times I have had to ask for help in different areas, I have never seen ONE organization make them up just to get gifts for the kids. That makes it sound like the organization is just out to get money and gifts. NOT TRUE....any legitimate and smart agency will not make up names. True I have heard of them taking back higher end items to have enuf funds to cover those children who were not picked, so they will at least get some sort of gift, but never have I heard them making up false names.
Also true that they are not allowed (at least in PA) to actually list the last names on the tickets on the tree. They usually have written on the tag -gender and age, sizes and wants. I have seen just the childs first name on tags also if the giver wishes to get something personalized. This does differ in some places and with different organizations, so it not a cut and dried answer.
Yes they do sometimes create gift packages for the children but this also differs according to how many volunteers and funding the agency has, but they do not just "create" tags based on what they think they have that year. The applications, you spoke about are usually done on an income basis and the person signing up knows immediately whether they will be eligible or not, so they agency can have an actual count at the end of the day and not just make a guess ---"lets see I think we will have 6 girls age 8 1/2 this year" It just doesnt work like that. What happens if they get 6 boys age 4 that year instead. This is exactly why the agency has a sign up so they know how many they will have in that year.
AGAIN, each agency differs in what they ask for on the apps. The smarter ones will put the gift request on so they are not wasting their funding, but they do tell the parents WHO DO THE SIGNING UP_NOT THE CHILD (or have a guardian there to help them-a 10 year old does not just walk in off the street and say " hey I want my name on a tree") that there is no guarantee that is exactly what they will get. It is a request and nothing more. Those tickets that have $2000 purses and fancy electronics are those that the volunteers either do not understand what those items are(locally they are seniors) and do not tell the parents that it is highly unlikely that the child will get that item
or the parents are just greedy and want something unobtainable for their kid,
or the kid has asked the parent for that item and the parent is not even aware that it cost that much(yes some ppl are just dense in that aspect) Please do not assume that everyone is greedy
We were eligible to sign up this year and chose not to because we felt our DD would have enuf and that there were kids who needed it more. Nor would I ever ask a stranger to buy something that high end and frivolous for my family.
NOW BACK TO YOUR ORIGINAL THREAD..........
I do have say that I was going to pick a name off the tree in our local
Walmart but couldnt afford what those kids wanted. Instead I will donate some nice stuffed animals and books that they can suppliment the gifts with.(all new looking of course)

I am going to try to go help at the SA to help bag if my DD will let me have a day to myself