I am a little bugged by donating to needy families only because my work adopted a family a few years ago. This was back in the days there were a lot of online specials, you could do sites to earn points/gift certificates ect... There was no spending limit. It was a dad, mom, 2 girls and a boy, the ages were like 9, 6 and 3?
So we got awesome deals. We bought probably 4-5x more stuff because of all of the specials. The money was spent wisely. We bought a bunch of food (not just for the holidays), clothes, toys, stuff the parents might need through out the year, toiletries, we really went all out.
We found out after wrapping and boxing up all of the gifts (which we were told to wrap each person's gift in different colored paper), whoever the family was through (I want to say Salvation Army, but it's been a while), decided the one family got too much and ended up opening up the wrapped gifts, separating all of stuff between 6 families.
While we were thrilled to be helping out folks who needed it, most people at my work were bothered by the gifts being opened and distributed between six families. A lot of thought was put in for this one family. We specifically were given these names/ages for one family and so we really put thought into it (I think they might have given some minor details-- parents hobbies and such...). At the same time I know there are a lot of folks who need assistance.
I am shocked reading about people taking advantage of the giving trees and such! I honestly would have never drempt of people doing this.