Always tricky.  Depends what they want to use it for.  I normally recommend somthing with a wde to long'ish zoom.  The Panasonic TZ series are normally good and don't cost the earth.

I find it funny when they ask what's the difference between a compact and a DSLR.  Look at the results even using the same focal distance.  That's the difference

 ecurb - The Devil