My most frugal gift this year was 24 skeins of four different colored yarn and some silver jewelry that I only cost me some time and wrapping paper. My friend loved it all (as I suspected she would) and an unexpected bonus--the jewelry inspired her!
I enjoy receiving sweet goodies from colleagues for the holidays, but I really like two of the gifts I have received. My very artistic friend gave me silver earrings with freshwater pearls. I love it because she made it herself with her own talent. My wonderful coworker gave me a frame she etched with a fun pattern. However, I really liked the whole presentation. She wrapped it in tissue paper (used) and placed it into a small gift bag (again used). The picture frame was free as our company gave it away, but she removed the company-specific logo and put her own design on it (reusing an item and making it new). This is what I like to experience--the creative and personal touch with items on hand.
I hope you receive some gifts you like and are both frugal and environmentally kind.