Psst, Santa, Have Your Elves Heard About Freecycling?

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Deron Beal, Freecycle founder

Retail sales may be sluggish this holiday season, but aside from theft, there's at last one ultra-cheap way to put more presents under the tree. Organizers behind the massive online freebie network known as Freecycle.org say that they have noticed a surge in new users looking for hand-me-downs and raw materials being given away on the nonprofit site, which has more than 6 million members around the globe. "People used to ask others in the network for luxury items," such as laptops and other high-tech gadgets, says Michelle Martinez, a Freecycle volunteer who oversees the local Freecycle chapter in Tucson, Ariz. But those requests have been replaced by ones for such basics as beds or mattresses. "I think there's a lot going on behind the scenes, as family members start moving in together, and you need more of the basics."

Freecycle encourages people to give away unwanted items rather than toss them in the dumpster. The group was founded in Arizona in 2003 by Deron Beal, an employee with a local recycling non-profit who had committed his life to eliminating unnecessary waste. The first incarnation of this online community involved only about 30 people — and Beal's desire to give away a used bed. But that initial gang of recyclers are now joined by more than 4,600 local Freecycle groups spread out across 85 countries. A University of Iowa study analyzed the average number and weight of items posted daily on the site and estimated that the network is eliminating more than 300 tons of garbage a day. (See TIME's Top 10 Green Ideas of 2008)

Amid the current economic slump, Freecycle has seen a record surge in membership — which, you guessed it, is free — as people look for new and innovative ways to tighten the belt. Worldwide, Beal says Freecycle is adding 30,000 to 60,000 members each week. And Martinez says that in Tucson alone, the average number of new members per month has jumped from 250 to 450 — an increase of 80%. She also says she knew the economy was reaching a new low last month when she posted that she was looking to unload a few extra sweet potatoes the day before Thanksgiving. Within minutes, she got responses from more than 10 potato seekers. And within four hours, the recipients arrived at her home to take away the handful of ingredients.

Freecycle members interact by posting both offers and requests on an online. In the past, Martinez says she would typically see people post items when they were in the process of upgrading, offering, say, to give away a desktop computer if they were buying a laptop or an old sofa if they were getting a new one. But today, as consumer spending has plummeted, Martinez is seeing fewer offers to unload such big-ticket items. "What you can sense is that no one is buying anything new," she says. "They aren't upgrading, so there's nothing being passed down."

Meanwhile, one day this month members of the Tucson group were submitting requests for such things as answering machines, rooftop TV antennas, cell phones, and firewood — items that would surely help users cancel their cable subscription and cut down on heating and other costs. Martinez said one person, apparently hoping to save money on the water bill, posted a request for giant barrels that he could use to capture rainwater. Members were also seeking scraps of fabric, mason jars and broken crayons, all of which are good for craft-making.

While the economy is clearly hitting families hard, Beal said he sees the Freecycle movement as part of a natural cycle in which consumers become more conscious of excesses in their lifestyle. "It's made us more aware of being thoughtful with our consumptive patters, sort of like that grandmother who lived through the Great Depression and now saves every little bottle because she knows there will come a time when you'll have to be careful with everything you have," he says.

In past years, the Freecycle network's busiest days have not been the ones prior to Christmas but those immediately afterward, as members have rushed to give away or exchange all the unwanted gifts they received. This year, though, Beal wonders if that pattern might be broken. "In hard times, we tend to be a little more thoughtful in our giving, and I think that will carry over to receiving too," he says. "Personally, I would love to think that this decrease in spending before Christmas leads to less excess waste that we need to get rid of afterward. It would mean we're achieving our mission completely."

(See TIME's List of the 50 Best Websites of 2008)