How about napkins. They just need a simple turned over hem. A set of 4 would take a yard if they were made 18" square. The scraps could be used by anyone who can quilt, or use leftovers to make napkin rings.
I use cloth napkins all the time. It is actually cheaper in the long run than paper napkins or paper towels and looks so nice on the table. There are so many pretty cotton fabrics now you can really set a pretty table.

For the group of church ladies I work with, I make lap quilt tops, sandwich them and pin baste, and have the ladies tie them. I finish them, but some of your ladies might be able to do the handwork on the binding. Even fairly new sewers could probably help make 4-patch quilt tops, like trip around the world.

how about sewing jelly roll strips together ...get someone to cuth them and then sew together to make a quilt top. Something simple

Mug Rugs are easy and sell pretty good.

Baby taggie blankets are always popular and very easy to make even if they are sewn alittle wonky it doesn't make a difference. I make these to put with baby shower gifts and the parents love them. When the little ones are born I think all the moms have said how much the babies love their taggie blankets. I put a link for simple directions.

http://www.newconceptions.com/patpdf/TagToyspdf.pdf

Aprons, placemats, pot holders, hot pads, crochet items such as baby blankets, quilts . Have a class once a week and work on one item. I am sure that amongest you all there are some talanted ladies who would be willing to share what they know and show others. That is what we do at our church. Have fun. The internet is full of free craft patterns for you to chose from.

I knew you would have great ideas! Thanks so much!!! I think I'll try to work up some sort of program/schedule showing what we will be doing each week. I checked this morning and we have lots of material, 5 machines and a cabinet full of thread. I think we will start with a basic table runner next week. That should be simple enough for even the very beginners and the more advanced can spiffy theirs up a bit!

Our sewing group has been making pillowcases and giving them to different shelters. Try the Hotdog method.

When I first learned in 4-H, I think one of our first projects was hemming towels. Linen toweling isn't too expensive and everybody can always use new ones. We worked all the way up to making drawstring aprons (no gathering, just a placket through which a self-fabric drawstring was pulled.)

In this more liberated age, I think they make tote bags so they have something they can use, while still only doing straight stitching. Lots of embellishing opportunities, too, to personalize them.

Simple projects like totes can be used to teach adults to sew and create saleable items for your fundraiser.

If I lived near you, I would volunteer to help. I really want to teach adults to sew, but have not yet found an outlet for this desire. Tried offering on Craigslist, but no one answered.

Good luck!

I've been teaching sewing with a church group and pillowcases have been the greatest hit! Baby/lap quilts would be great, esp when done as the Maryquilts.com free Quick Strippy quilt pattern. All straight seams, no intersections or seams to match up. Tissue holders are a great profit maker and super simple. Christmas stockings? Ornaments? Different occasion gift card holders? Anything small, simple, and cute will bring the greatest income. Rope baskets would work for some of the not so pretty fabrics people donate.