My fiance's mom and stepdad offered to pay for our rehearsal dinner. When they figured out the cost for 38 people (28 people from my family but only 8 people from theirs) it turned out to be more expensive than she expected. She then suggested that we have it in the church basement and bring in pizza or some catered food. I am absolutely fine with this. A nicer dinner would have been fun but they just closed on their house at a loss and they are in the process of moving the week before the wedding so I understand that money is tight.
The problem is my family (mom, dad, and aunts). They made it loud and clear that they do not want to have the rehearsal dinner at the church but they also made it loud and clear that they will not be contributing to the cost (my folks are paying for the bulk of the wedding so that is understandable). At first my fiance and I considered chipping in with his mom and stepdad but now that everyone has so loudly voiced their opinions about how my fiance's mom's idea isn't good enough for them we want to cancel it and not have a rehearsal dinner at all.
What would you do in this situation?