Cheap and fun? You can't do better than that.
Assign a recipient to each participant. Have everyone contribute $9 to a group fund, and then spend an additional $1 on a hilarious dollar-store gift of their choice. The host uses the group fund to purchase a larger, nicer gift. Everyone exchanges their presents and shares with the group. Then take a vote on the best $1 gift...the buyer wins the big prize!
Image: Courtesy of Dollar General.