“Did you want them to thank you for being such a great person?”
A simple thank you would have sufficed. What would you do?
I am a Christian who doesn't observe Christmas because it's not a biblical holy day.
If I were offered a Christmas gift I too would decline it respectfully and gracefully. I might say "I appreciate your thoughtfulness and intentions, but I have to decline it because it goes against my beliefs."
If pressed, I might say that it should go to someone who really needs it and can't afford it.