it is important to remember not everyone in this world celebrates Christmas. While I am thankful for every gift I get from my students, I do not celebrate Christmas. I have no use for your ornaments, christmas themed books, sweaters, socks, santas etc.
I used to be kind of put off that parents assumed everyone celebrated exactly what they did. But now I just chalk it up to our society which is dominated by christmas this time of year. I would never give a menorah to everyone I know, so why pass out santas and ornaments to everyone you know? (flame away)
That said, in my own children's classes, we usually take up a collection to get one class gift card to Barnes and Noble or Target, or a general one just for the teacher. We ask for $5-10 per family so it isn't a huge amount people are expected to spend. But in the end the teacher gets a nice big gift card he/she can use for supplies etc
Being a teacher I am so thankful for Target and Barnes and Noble gift cards. I use them to replace old games and old favorite books in the classroom.