If they buy bitcoins, they'll lose 1/4th of their money, sadly. If they bought a little in bitcoins, it might be 1/2 or 1/3, but they'll probably buy large amounts of coins at once.
Nah, they're not stupid. Most likely someone that's familiar with bitcoins would help them buy and use additional coins efficiently.
The coins that have been donated to them appear to be circulating, not just accumulating at the main donation address, so someone knows what they're doing:
https://blockexplorer.com/address/1Q7DQVTubbUqr5by2YoZJRKCEzj9D3LQ9w