Christmas gift exchange, small family, low budget?

Looking for ideas for gift exchange, NOT secret santa or white elephant.

Family is relative small, 8 people, but ALL our gifts come from one another (we receive nothing from other family members). Ages range from 1-45, and is essentially two families (2 sets of parents, both with 2-3 children each).

The problem that we are facing is being able to stay in our budget, still being able to get what everyone wants, and everything still being more-or-less a surprise. (Someone writing down exactly what they want, and giving it to one person for them to buy is not an option)

Update:

Again, the problem IS NOT what to buy everyone, but rather how to get everyone what they have asked for and still keep it a surprise. We each probably have $500 or more to spend

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