Only one of 200 local authorities asked, Banbridge in Northern Ireland, was sending a card which made reference to the birth of Christ.
The investigation by the Christian Institute for the Telegraph found a large number of councils were sending pictures of snow with the tag line of 'season's greetings'.
The Christian Institute said too many councils are now more concerned with "PC inflicted embarrassment" than celebrating Christmas.
More than a quarter of councils are not planning to send cards at all because of budget cuts.
Spelthorne in Surrey, North Warwickshire and Calderdale in West Yorkshire are sending cards which offer 'blessings' over the Christmas period.
The only card mentioning Christ, Banbridge, said: "As we celebrate the Birth of Christ may God's Love be with you this Christmas season and evermore."
Colin Hart, chief executive of the Christian Institute, told the Telegraph: "Well done to those public officials who have chosen to shun the saccharine sentiment of 'Happy Holidays' for Christmas cards that celebrate the coming of Jesus.
"The birth of Christ is a cause for deep joy not PC inflicted embarrassment.
"The Scrooge-like approach of some councils to take Christ out of Christmas is a denial of the wonderful truth of the Christmas story as well an affront to this country's Christian heritage.
"This has all the hallmarks of another attempt by publicly funded bodies to airbrush Christianity out of public life."
