Upload & Sell: On
I appreciate the quandary you're in Leighton. It would be great fun to do this shooting, though the time may be hard to come by, both for shooting and for processing. It is also nice to be recognized. I imagine the offer was extended because these folks have seen your work and are impressed... as they should be. The downside is they aren't willing/able to pay very much.
When the local seminary contacted me to use one of my photos for their promotional material I was honored. But when they made an offer for the photo I felt I needed to ask the question of folks who would know about such things and spoke to two friends who are professional photographers. I realized, of course, that my getting this job meant that some pro wasn't going to have an opportunity to get paid. I decided that I wanted fair value for me work out of respect both to my friends and to myself. In this case, of course, they were looking for a specific photo that couldn't easily be duplicated because I'd shot from an unusual angle in ideal conditions. When I reported my price to license the image for a year, the director of communications tried to strong arm me, saying I'd been taking photos on seminary property without authorization. He was "willing" to give me authorization in exchange for use of the photo. I simply walked away. They came back two months later, very apologetic and I got my price.
I don't know whether you have aspiration for creating a business out of your photography. If you do this could be in investment in establishing both a presence and a reputation in your community. In that case, a loss leader is never bad. But I would only do this if it made good sense for you to do it. If their budget really is that tight, the options may be your excellent work or someone else's snapshots. In that case, if you'd enjoy doing it you might simply say yes and have fun. It definitely is an honor to be asked my friend.