Hmmm truly a dilemma...I guess the first question that ran through my head is how old is your friend??? Are her parents involved with/attached to the dog?? Is it something that they would regret if the dog was given away?? (I'm just thinking that if it was my kid giving away the family dog, I would NOT be happy about it at all!)

I think that the second thought you posed about the cleaning and grooming is a good idea. That way, at least you are helping the poor little thing.