A couple of traditions that my friends do that I really like are sharing your testimony and unwrapping Jesus.
Their family gathers for their Christmas gift unwrapping and before anyone unwraps anything, the Christmas story is read (it would be great for kids to act out the Christmas story). After the scripture reading, each person shares something he/she is thankful for, which inevitably turns into a testimony. The Spirit is really strong as each member hears and encourages the other during this time (FYI, they are non-LDS).
Then on Christmas morning, the first gift that is unwrapped is a small baby Jesus that mom wrapped and placed in the tree. It is to remind everyone of the gift that Jesus was to the world from our Father. I think that would be an appropriate time to read the Christmas story from the Bible or the Book of Mormon.
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We have been called as witnesses, not judge or jury.
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