Hey,
I love GIFTS
Some nice inexpensive ideas are photo albums (of course stiched with letters and colrs of your organization). Picture frames that are inexpensive and then have the letters put onthem(I KNOW it sounds tacky but even puffy paint will do the trick on a picture frame as long as the frame isn't metal...then it WILL look tacky). Vases with the letters on it. If they're still in college (not grads) then, like, bulletin boards (if in the dorms, this is cool) with the letters.
Have fun. And I agree that some sewing talent does halp but you can make something happen even if you're not...whoever