Stories about Christmas being banned because of potential offence to any one ethnic group have become almost as much a part of the festive season as brussels sprouts – but a multi-faith group has decided it is time to put a stop to the tradition.

Concerned about the divisive effect of such stories, the Phoenix inter-community initiative, a group of bloggers, activists and community representatives, have come together to try to demonstrate support and respect for Christmas among different faiths.

Julie Siddiqui, vice-president of the Islamic Society of Britain (ISB), said: "Almost every year for the last few years we see some sort of story in the local or national papers that local authorities have changed the name of Christmas, are not having lights, or have banned it.

"I think it's damaging in terms of community relations. No one is asking for Christmas to be banned, Muslims certainly haven't. The inference is often that it's coming from Muslims."

One of the most notorious examples of scare stories was the widely reported claim that Birmingham city council had banned Christmas, replacing it with Winterval to avoid offending non-Christians, even though it was untrue.

Through it's online Happy Christmas 4ALL campaign, Phoenix hopes to counter such myths, highlighting participation by non-Christians in traditional activities. For example, one of the posts on its Facebook page shows pictures of Muslim students taking part in a nativity play, while others highlight common religious beliefs shared by different faiths.

Phoenix is also encouraging non-Christians to enter into the spirit of goodwill by getting involved in volunteering, particularly on and around Christmas day. While Siddiqui says some Muslims do celebrate Christmas with a tree and a special meal, for others it is a good time for them to put something back into the community. "We should, all of us [volunteer], especially those of us that aren't doing much on Christmas, rather than just those [Christians] who are having to sacrifice their own Christmas."

She is volunteering at her local church in Maidenhead on Christmas Day and said ISB members are helping out at Christian charities or non-faith groups like the homelessness charity Crisis at Christmas. It is simply continuing the tradition over the years of non-Christian professionals in essential professions such as medicine volunteering to work over Christmas to relieve their colleagues, according to Siddiqui.

As well as the ISB, there are representatives from a number of groups involved in Phoenix, including the Jewish group JDC Europe and the Three Faiths Forum. Another member, Vidhya Ramalingam, from the Institute for Strategic Dialogue, said: "The idea is to promote volunteering at Christmas and volunteering to take over the work of some Christian charities.

"It's been done a lot in the US where Jewish, Muslim and Hindu groups will take over Christian charities' work on Christmas day. It's also a time when people feel alone so we also encourage checking up on neighbours and making sure no one feels vulnerable."

Ramalingam, a Hindu, added: "I don't know anyone who actually wants to ban Christmas and most Hindus and Muslims that I know actually celebrate Christmas."