I think that this is a great idea. If there is a "loophole" in a program, someone will find it and use it to there advantage. It is unfortunate that people are always looking to take advantage of other peoples kindness.
As I was reading all of these posts I just sat here and cried. The true spirit of christmas is to give, to do unto others as you would have them do unto you. No matter what the circumstances some of you still find a way to give and I think that is a great kindness. I have always wanted to choose a child and do this, but every year we are struggling to buy for our own children.
I was recently telling a ex-neighbor (she is in missions and just moved away) about our own financial strain this year and she suggested that I contact a local church and have my children adopted. I know my children won't have a great christmas, but they have so much already (mostly things family has bought or hand me downs) & I know that there are familys in far more need than mine. I have spent $26 so far for christmas and have 3 presents for DS8, 7 for DD6, 4 for DD3, and none for DS1. I have around $275 (total not per child) to spend on them (what we can save between now and christmas) I will look for really great deals and make my money count. There will at least be stuff on christmas morning they can use, need & want. I will get the older 2 something nice (1 big item a piece DS Star Wars Legos & DD a scooter) and the younger ones won't care as long as there are some toy's and shoes (they have shoe fettishes

) Next year, I will be better planned, and hopefully we won't be as stressed with money & I can help someone in need. My family on the other hand will prob. not like getting a present, but for them the present from us will be getting to come home for Christmas. We recently moved 4 states away, and if we buy them presents we won't be able to go home.
If you don't want to give to a charity, think about someone you know, or work with that is having hard times and help them out. Even a gift card to a grocery store is greatly appreciated when you don't know if you will be able to buy grocerys next week.
Just wanted to share my opinion & story. Sorry it's such a long post.