From Team Fortress Wiki
The Secret Saxton is a purchasable action item. It is a gift that, when used on a server, randomly selects a player and drops that player a random item. The received item will note the gifter's name and the date the item was received on in the description of the item.
If the player has the Spirit Of Giving (awarded to all players with premium accounts on December 21, 2011 Patch), its rank will be incremented when the player uses the Secret Saxton to grant a random gift.
The Secret Saxton is not craftable or obtainable via item drop system, and can only be acquired by purchase from the Mann Co. Store or by trading. Upon its use, a random item is given to a random player in the current server, and a notification is displayed to all players in the server (prompting applause and cheering sounds). The recipient will then have the item placed in their backpack.
The Secret Saxton can be used by equipping the item in the action slot, then pressing the "Use Item in Action Slot" key (default: ). Alternatively, the Secret Saxton can be used by selecting the item in the backpack, and clicking "Use". It is possible for the Secret Saxton to be used in a server with only one player, guaranteeing that the player will receive the random gift. It is not possible for the player using the Secret Saxton to obtain the gift for their own self.
Additionally, the Gifting Man From Gifting Land hat is given every day to the person worldwide who gave out the most gifts the previous day.
Items acquired through the Secret Saxton will be marked as gifts from the user and timestamped with the receipt time and date. Most items normally found by drop (such as weapons, hats and some action items) are possible to be found as a result of a gift's opening. All gifts received are tradable and can be used in crafting. Unusual hats or Mann Co. Supply Crates cannot be found as random gifts from the Secret Saxton.
Compared to purchasing the Pile o' Gifts from the Mann Co. Store using British pounds (£) rather than United States dollars ($) or Euros (€), it is cheaper to buy 23 individual versions of the Secret Saxton; £13.57 in total, compared to £14.99 for the Pile o' Gifts. Purchasing the Pile o' Gifts with dollars or euros will result in a bulk discount of nearly 15%, but using pounds will result in a bulk surcharge of over 10%.
If the pound-to-dollar ratio of Secret Saxton prices is taken as a fair starting point, a fair price for Pile O' Gifts would be 20 × £0.59 = £11.80. However, doing this gives a chance for players to receive multiple items and others to receive nothing, as opposed to a Pile O' Gifts where all 23 players shall receive one item each.
- [Undocumented] Added the Secret Saxton
- Gifts from Secret Saxtons and Piles o' Gifts now have a chance to grant a gift in addition to whatever item they would have granted normally.
- [Undocumented] The Spirit Of Giving and Secret Saxton have been distributed to all premium players.
- Added daily a periodic reward hat for gifts given.
- A player can receive a Secret Saxton from themselves even while playing on a full server; the game will notify that they recived the gift from themselves, but no item will be rewarded. 
- If a Secret Saxton is gifted to a player who was going to find an item normally via random drop, that item is obtained as a gift as well.