My family does a name draw, too, with the same $50 limit. While not explicitly stated in the rules, we're supposed to spend the full $50. I got an e-mail from the person who drew me asking what we wanted (it's for the family, not me individually.) I asked for something for the house made by someone locally in her area. I told her the colors of our house (we live in different states and she hasn't seen our house.) I thought this was okay because it supports local artists and gives creative control to the gift giver. Is that okay to ask for?
About five years ago I sent a hand-made scrapbook to the family member I drew. A few years later, when I asked how they liked it, she said they never got around to filling it in. I don't do handmade for the gift exchange anymore after that.

I got that family again this time around and got a board game, paper airplane book, games to play with kids book, and a make-your-own-sundae kit. I was happy wiht how I stretched the $50 and I hope they like it.