Jack, you can still use iTunes even if you don't have an iPod.
When you download the songs form iTunes, it will be stored somewhere in your PC, usually the C:\ unless you've specifically asked it to go somewhere else, like youe external hard drive.
You can burn the tunes on to a CD from there BUT you have to be careful that the person you are gifting it to has the ability to play MP3's on their CD player. There is a way to convert the music, but I'm not sure how but I will find out for you.
Alternatively, of you know the person you are gifting it to has an MP3 player, you could pop the tunes on a USB stick and they can take it from there to put on their own MP3 player?