With the sudden rise of Rutlemania, a huge collection of fans around the world anxiously anticipated every move of the band. In the wake of numerous fan magazines dedicated to tracking the prefab four (Mersey Rut, Rut-Week, Rutles Weekly, AutoRut, etc.) the band decided to begin running official fan clubs and magazines, in order to properly inform fans of upcoming events, records, etc.
Every December, the band would also create special recordings just for these fans which would be sent out. These included short songs, skits, pantomime, and specifically created covers. According to Paul Simon, who knew the Rutles and was interviewed by Melvin Hall in 1978, these were mainly the passion projects of Ron Nasty, who certainly seemed to enjoy them more than the rest of the band. 
The records were perfect for their brand, building up their image as sociable, close to their audiences, and assertively not-Jewish. This also allowed the band to create something fun yet loose, as their regular albums continued to become refined and selective. Their later skits were often inspired by The Dirty Mac Band, a comedy group that had become popular on the BBC.
For many years, The Rutle Christmas Records were extremely rare, available to most fans only through bootlegs. Two songs, "Dear Father Christmas" and "I Don't Believe In Santa Anymore", were included on "Vast Bastards," but the entire collection was not generally avaliable until 2017 when a limited Vinyl re-release was produced.
- From the extended interview with Simon, released in the sleeves of The Rutles (album).