Spend them on the people who are truly important in your life. Everyone else should be handled without a big fuss. It's not that we don't like the people in our office gift exchange. It's just that six months from now they won't remember what you bought them. An office party is a great place for a gag gift.
Thrift stores can provide an assortment of items that can be used for funny gifts.
Stuffed animals, clothing, coffee mugs and toys are fertile ground for the imagination. An old alarm clock could be good. One where the hands have been removed is even better. Many of us have far away relatives and friends. Unless you're particularly close, you might as well admit that you really don't know what they already have or what they need.