Godparent dilemma

My older sister and her husband are the godparents of our brother's youngest son. Our sister in law told my sister that because they are the godparents, they would have to plan and pay for the baby's first birthday. My sis and her husband cannot afford anything at the moment since they just bought a home and are trying to catch up financially, but our SIL doesn't seem to understand that. I should add that my brother does everything his wife says and has not seen a problem with her demanding my sister to do the birthday. Should godparents be responsible for the baby's first birthday or is it the parents' responsibility? 

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