There's a great book called "The Tightwad Gazette" by Amy Dacyczyn that has pages of ideas for frugal Christmas gifts. One of these is a Christmas bear made of bread ingredients.

I make gourmet cookies every year and distribute those as gifts. I go to thrift stores, dollar stores and yard sales to look for Christmas jars and tins to put the cookies in. If I budget well the total cost for all the ingredients A-Z, for approximately 1500 cookies, is about $150. The only other cost is for shipping.

People love cookies in general, but also it's a practical gift since they can serve them at parties or when guests visit. Some of my gift recipients have their

gift" for dinner. It's a gift everyone can enjoy and they don't have to store in their home.

Refer to this factoid: http://factoidz.com/gifts-for-under-20/

I've bought small boxes or straw baskets at the crafts store and filled them with things that I knpw that person will like.  For example, someone I know is a garlic lover but cannot travel to the exotic shops to get spreads, seasonings,etc.  I think I spent about $10 and they talk about it to this day.

If that person does not have interests or hobbies, then everyday items (like toiletries) in trial sizes is appropriate.  Maybe if you include a $5 minibook of jokes or positives sayings.