What would you do?

A colleague at another company has the following problem. An old friend is being honored by a charity that my colleague doesn't normally contribute to. However, under the circumstances, she decided to spend $125 to go the dinner. When she contacted the organization, she was told that her friend had put her down as buying a table for $1250. My colleague doesn't want to end the friendship, but she, also, has no intention of spending $1250. What would you do. If it was me, after losing much sleep, I would tell the friend as diplomatically as possible that they have a lot chutzpah and that as a result, I couldn't attend the dinner. I'm curious what others would do.

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