Everyone is tightening their belts this holiday season. One way to stick to a holiday budget is the idea of “group gifting.” Divine Caroline has noticed a recent upswing in this trend:

During times like this, quality can go down simply because many cannot afford the higher-end gifts that they are used to giving. One solution is group gifting. Instead of a few people giving small gifts, that same group combines their resources to buy fewer but more prominent gifts. In the end, the result is usually much more satisfying for everyone involved.

I really like the idea of spreading out the cost of a big gift amongst family members or friends. And honestly, less is more. I’d rather have one gift and have it be a Kitchen Aid mixer, than lots of little gifts that will take up space. Even if your holiday budget is limited, a small amount of money split up amongst friends can really add up.

* Twelve employees could spend $15 each on gifts for their boss, or they could get her an Apple iPod nano 8 GB. 12 Gifters equals $11.25 each
* Five siblings could buy their mother $30 gifts, or they could get her a Louis Vuitton Damier Speedy 30. 5 Gifters equals $30 each

You get the idea. But what is the etiquette associated with group gifting?

According to Gifting Resources, there are several factors to consider when coordinating a group gift. If the gift is for a boss or coworker, you shouldn’t feel obligated to contribute. If an envelope is going around to collect funds, it should go around the office freely without someone standing over your shoulder putting on the pressure to participate. And the general rule of thumb seems to be that aside from a wedding registry, it is tacky for the gift recipient to ask for the high end gift.

What’s your opinion, though? Is group gifting tacky or savvy?

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