Al-Salamu alaikum, 

A group of my nieces wanted to start a secret gift giving for Eid, where they will each pick a person at random and buy a gift for that person. That way, each person will not have to buy many gifts and no one is left out (everyone will get a gift). Initially I didn't think anything was wrong with the idea, but another member of my family said this resembles "Secret Santa" gift giving, which made me question if this form of gift giving is permissible. 

Here is the link to "Secret Santa" - http://en.wikipedia.org/wiki/Secret_Santa. 

I hope you can give a detailed answer on this. I know gift giving in general is permissible, especially on Eid, but is this form valid in our deen? 

Jazak Allah khair, ma’salam.

In the name of Allah, the Most Merciful, the Grantor of Mercy

All praise belongs to Allah, and may prayers and peace be upon Allah’s final Messenger.

Gift giving in general is recommended in Islam. The Messenger of Allah (blessings and peace be upon him) said,

"تَهَادَوْا تَحَابُّوا"

“Exchange gifts to promote the love between you.” [al-Bukhari in al-Adab al-Mufrad from Abi Hurairah]

However, it is not part of the Sunnah to give gifts to everybody on every Eid. Once this becomes a routine habit and expectation, it loses its meaning and value and turns into a burden.

As for "secret" gift giving, there is nothing that warrants its prohibition. The forbidden imitation pertains to matters of religion. This is simply an idea to reduce cost of gift giving to a large number of people.

Allah knows best.

Related fatawa: 83000, 86513