This game is similar to the Chinese something game... ahhh can't remember what it's called. Everyone brings a wrapped gift that is something they don't want (usually from their house)... they try to be creative and funny. Then everyone draws numbers. Number One gets to pick from all the gifts. Number Two gets to either pick a new gift, or steal Number One's gift. Number Three can either pick a new one, or steal from Numbers One and Two. Get it? Usually a gift can only be stolen three times, so the person who steals it the third time gets to keep it.
The "White Elephant" part has to do with the gift being something that no one would really want.
It is a fun game... A couple weeks ago, my chapter played a version of this at our Christmas party. We called it Dirty Santa- everyone brought lingerie or racy items as their gift.
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