Direct sales parties - a couple of my friends sell Tastefully Simple/Pampered Chef/etc and do catalog events and offer to donate a portion of their sales to charity. It's on going so it can really adds up.
Bake Fairs - if applicable, maybe the family's church would allow you guys to host a bake sales on Sundays after services every once in a while.
Garage Sales - I am not sure of the logisitcs but maybe a multi-home garage sale in the spring when the weather turns back to being nice.
Scrapbooking Crops - you just need a large room with good lighting, tables and comfortable chairs. Depending on the length of the crop will determine what meals you should offer. You could do bagels for breakfast, pizza for lunch or dinner, deli, or trays of food like ziti & chicken. A lot of restaurants will offer a deal since it's for charity.
For raffles at any of these events, most of the times you just have to ask and people will be happy to donate something. Like NEVERENOUGHWDW suggested, go to local businesses for donations - dry cleaners, nail salons, restaurants. Check with major sports teams in the area - one of my friends received donations from the Mets & Yankees for game tickets to raffle off for her church. They weren't the best seats or dates but they were free and there's always someone that would want them.
Check out the Pepsi Refresh project - they are donating set dollar amounts every month to various charities/causes based on votes. It's basically a popularity contest - heavily promote it on FB and other places and see how it goes.
Maybe organize a walk-a-thon.
I am very sorry for your friend.