Every December the pensioners of Stirling Way in Keynsham have had a collection for Somer housing officer Debbie Morgan, who they say is like a daughter to them.
But Somer Community Housing Trust has sent a letter to all 24 residents saying members of staff are not allowed to accept cash or cheque gifts.
Tenants are upset and angry at being told what to do with their own money and say they will have the whip-round as usual.
Retired nurse Gladys Spencer said: "Every year we have a collection and then give a cheque to the warden at our Christmas party.
"I have been here nearly 10 years and it has always been done. I don't like being told what to do with my own money.
"They are treating us like children and I think that's wrong. At our age we should be shown some respect."
Ms Morgan used to live on site but Somer now has a system in which housing officers visit regularly.
She is also not allowed to organise their Christmas party.
Retired engineer George Cole, 79, said: "She used to do a lot of things off her own bat. I have always contributed to the whip-round. I feel it's our money and we should be allowed to do what we want with it."
Helen Janes, 82, has lived in Stirling Way with her husband John for the past eight years. She said: "I used to be a warden myself in Knowle and I always had a Christmas present from the tenants."
Daisy Gray, 85, said: "We should be allowed to show our appreciation for what they do for us. The only way we can do that is at Christmas time. The warden does put herself out to do things for us – we think of her as a daughter."
Joyce Evans, 83, who lives in a Somer bungalow in Cameroons Close next to Stirling Way, said: "She used to cook dinner for us and organise parties. She is not allowed to do anything now."
Joan Tillings, 77, said: "I have lived here for 17 years and always contribute to the whip-round. I feel the same as everybody else. I'm really annoyed at being told what to do – it's very Big Brother."
Olive Smith, 92, said: "I feel very strongly about this and think something should be done.
"They (Somer) say we should give her a box of chocolates. Imagine if everyone gave her a box of chocolates – it's ridiculous."
Peggy Catling, 74, said: "Debbie has been very good to me. We just want to show our appreciation for what she has done. I worked for WH Smith for 33 years and we were always having whip-rounds in the office. It's just the same."
Mary Blackmore, 71, said: "I think it's just ridiculous. Anybody would think we were giving her £500. Nobody gives more than a fiver."
On one occasion Ms Morgan was given a coconut as a gift. She had to tell her employer and Somer then wanted to know how much it was.
Managing director of Somer Community Housing Trust, Angela Gascoigne, said: "We understand how strongly some residents feel about this issue.
"We are certainly not telling them how to spend their money, simply that it is wrong for our staff to profit personally from their work, or for their professionalism to be called into question because of gifts they may receive. This policy applies to everyone who works for the trust.
"We have written to all the residents at Stirling Way to explain this and suggest they might like to consider alternative ways of showing their appreciation for their sheltered housing officer."