No surprises there. Nevertheless you can obtain a computer system that will fit such a budget and meet the congregation's needs. Many churches could benefit from donated computerware. About 70 percent of American households have a computer that's less than two years old. So there are probably many good used computers cluttering the dens of every church's constituency.
Donations are sometimes treasure and sometimes trash.
Yes, that's kilobytes of memory, not megabytes. They were running DOS version 3.3 without even an operating shell. My friend said he was sure there were dinosaur scratch marks on the case. Make sure it's a Pentium-class PC or better. Most of these can be cheaply upgraded to at least 166MHz, and many can be tweaked to 300MHz.