Linux for Non-Profits?

Glowing Fish asks: "I am volunteering for a non-profit that is currently in the process of giving away grants of systems (some using Linux and some without an OS) to various non-profit organizations. One of the problems is that many of these organizations have a somewhat skewed version of what they need, thinking they need Pentium IV systems with 100s of megs of RAM with Windows XP installed. I have been given the job of politely explaining that for most non-profit organizations, it is not necessary to have this type of computing power. What is the best (and politest) way to explain to people that they don't really need this type of computing investment? Without Microsoft-bashing, how would you explain the ever spiraling relationship between RAM and OS bloat? What type of systems would you suggest to a non-profit organization for office work, and why?"