I make different things as gifts for my family and grandchildren....birthdays, holidays, etc., just as you all do. These are the only "free" things I make.
I have told many friends and acquaintances that I cannot make free sewing things for people. I will help out with anything I can...bake sales, cook for shut-ins, church volunteering, auctions, lots of things. But, I have explicitly told anyone that says "Oh, make me one of those", that I give and do everything else for free...but will not do any sewing or quilting for free.
When you tell everyone the same thing, they understand and are not offended. I haven't lost a friend....yet.