Okay, here is where I get on my soapbox. :) You should arrive at some idea of your "hourly" rate -- even if you never bill by the hour as long as you are alive. Use that as a measurement for your estimate of hours to complete any jobs you are bidding on. And use some kind of project management or time tracker (even if it's just an Excel spreadsheet) to keep track of the hours you spend on a project. As you hone your craft, you will find that you can spend less time on something, still charge the same price (x number of hours) for the job and make more profit. The goal is to work smart, not hard, and to work less and collect more money.
Here is how I handle pro bono or discounted projects (I have done a web site for a friend's father and I also designed and maintained our local civic club web site): I don't generally mention a discount when preparing an invoice for a friend. I just prepare the bill as I normal would, THEN under that, I take off a percentage or a dollar amount, and that line item reads something like "good will discount" or some such, so they get the idea that this is a special arrangement specifically for them. You don't want to give a friend a discount and then have her or him blab all over town how cheap your rates are, since this was a one of just for them.
And for the civic club or other free work, I keep track through my project management system (activecollab.com should you wonder) of what I've done all year, and at the end of the year, I create an "invoice" and it lists the total hours and amounts (calculated by my hourly rate), then the last line item says Billed; no charge and $00.00. This way, they know they are getting a VALUE; not just some free stuff, and they know exactly what you did and what everything costs and but for your generosity, that's what they would have to pay someone else, if not more. Hope this helps!
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