No $ for gifts

Km • 27. Married 5 years. Our daughter Stella Claire is our entire world. Born Nov 15. 2015. Pregnant with #2 due in April.
Baby is due in late Nov. We're usually invoked with three different white elephant gift/Christmas exchanges for the holiday season plus 10 other presents for family members. It's usually around $600 for gifts. We simply can't do that this year. How do you let family and friends know that you won't be participating in gift buying in a respectful, sincere way?