I am a teacher and librarian in my day job. 800+ kids know that I am a quilter and occasionally they get to see the fruits of my labor. Naturally, they often ask me to make them a quilt. I answer honestly that it costs to make a quilt and I'll gladly take their order with half the money up front, the way I handle commissions from other customers. I always get a answer that he/she doesn't have that kind of money or can't pay, etc. Since they are kids, I take the opportunity to gently teach a quick lesson on manners and that when we ask for something, we should be willing to pay for it. (Otherwise it's begging.) I suggest you treat people who ask the same way you would treat a child who hasn't learned the lesson and teach them.
P.S. when a adult who offended, I apologize and say that I'm so used to working with kids, I sometimes forget myself when I'm dealing with adults.