My friend's sister was in the same situation years ago. She needed a kidney transplant and it wasn't going to be covered completely by the insurance company. They did several fundraisers such as raffles in which the prizes were donated by different local busineses, they did a baked potato lunch fundraiser and basketball tournament.
A couple of years my boyfriend had a coworker whose son was going through leukimia and they had an iPod raffle. The coworker's 5 siblings each bought an iPod Nano and they sold tickets for 5$ each. They raised over $5,000 with that fundraiser. They also had three pancake breakfasts and they received a small grant from a local foundation.