I don’t know what your organization does or the context in which I assume the bylaws require the organization to be “nonsectarian.”  But it sounds like you may have just proved your compliance with the bylaws.

The dictionary definition of “nonsectarian” is “not being affiliated with or restricted to a particular religious sect or group.”  I don’t consider Santa Claus to be a religious figure, but he is certainly associated with an important Christian holiday and belief.  Lighting a Menorah is part of a Jewish tradition in celebration of Hanukkah.  It could possibly be considered a sectarian activity to participate in either one of these events.  But it would definitely seem to be nonsectarian to participate in both.  Participating with both Christians and Jews in their separate religious traditions is not likely in our society to be considered restricting your activities to a particular religious sect or group.

This is the kind of question that bylaws are supposed to answer, not to raise.  For more on how to avoid questions like this, participate in our webinar “Bylaws: The Constitution of Nonprofits — The Art and Science of Making Them Work.”