I'm so glad I read this thread. I am a new godmother and was a bit taken aback by my experience.
I was absolutely honored when I was asked but was never asked to fork over any money. They kept saying in their South American tradition, the godfather was going to pay for it all (dress, shoes, celebration meal, church donation). I offered to chip in, maybe buy the dress, etc. Nothing out of the ordinary.
They all of sudden got very expensive taste and started looking at $200 baptismal gowns! Did I mention these are not practicing Catholics?
After a few months, the baby's baptism looked as if it would coincide with her first birthday. When it came down to the planning, they budgeted over $1100 for both celebrations (which I found to be high). As we were all planning the celebrations together, I was then asked to help chip in. Very last minute and slightly irritating. But I was assured they were being generous in their budget and they would NEVER reach that much.
Regardless, their budget was totally blown on the baptism and all the costs added up to just under $800, in part because they wouldn't decide on anything and had things done at the last minute. The godfather is very laid back and was very nonchalant about it but I feel very taken advantage of! I understand giving the baby maybe $100 or $150 max but.....am I wrong in being slightly disgruntled? The only reason the birthday party stayed under budget was because I planned and ran the whole thing from start to finish.
About the church donations: I was given an envelope at the baptism class for a baptismal donation. I think it's expected but the amount is at your discretion. My envelope had denominations from $50 and up but also had an 'other' box you could check off.