I usually do work for close family at no charge or maybe just materials. Other family at a slight discount (maybe).
Friends, I charge full price with maybe a lesser mark-up.
When I first started I felt like I should give friends a discount. Then got to thinking that I have friends that run a business and I have never gotten a discount from them, nor have I asked for any. I actually talked to one of them and he explained that if he/we gave all our friends a discount, we might as well not be in business.
My philosophy now is, if they are truly your friends, they would want to help you with business as they would have to pay a stranger full price anyway.
I will give discounts here and there, but it is my decision, if anyone asks, it usually "irks" me and I refuse. I have found that those who actually need help or a discount, will never ask, they just suck it up and go on. Those who do not need it are the ones who are always asking.