Wedding Party

How to respond to this e-mail?

I've been trying to figure out how to proceed with this for a week. I need to respond to the MOH today, as I think I'm being rude. 
In addition to my own wedding, I am in a wedding for a good friend who is getting married in June. Her sister, the MOH, sent an e-mail to the bridesmaids with her plans.  I have never been a bridesmaid before so I don't know how to respond. 
My main concern is that I don't have the disposable income available to spend money on this party, as much as I love my friend. In addition to my own wedding, and the large cost of her bridesmaid dress, I have a baby on the way and a new house closing in November. 

I'm wondering if you can help me with a few things: 
A. Am I suppose to offer money for this party for the food and decor? 
B. I live 5 hours from the bride's sister's house. How horrible would it be if I skipped the party? The party will be 6 weeks before my wife-to-be gives birth, and I just worry that my fiancee will need me, and I will be 5 hours away.
C. The MOH mentioned that the theme is "new house." She said: "because Jennifer doesn't have a house yet, but they're looking to buy, we're asking guests to donate to their house fund." 
I have never heard of this. Does this mean the bride will be opening envelopes of money in front of everyone? My feeling is that this could get awkward quickly.
D. I was asked to think of games. I'm at a complete loss. What games? Most of my friends have never been to or had a bridal shower. 

Thank you.
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