Hi csbower, welcome to MR!
That's a
great gift for your daughter! The Kindle can read books in mobi format (file extension is usually .mobi or .prc). If you click on the E-Books link on this site, you'll find
lots of free books. There are also many other websites that have free or inexpensive (or expensive!) books. I have only gotten books from Amazon or here, so I'll let others fill you in the other bookstores you could choose from.
These instructions are assuming you use Windows. If you use a Mac, someone else will have to supply instructions:
1. Download the book file to your computer.
2. Attach your Kindle to the computer via USB.
3. Open a File Explorer window. The Kindle will show up as a drive.
4. Copy the file from your computer to the Documents folder on the Kindle drive.
5. Use the "Safely Remove Device" before you remove the USB cable.
I think that's about it--I'm sure others will be along to chime in if I missed anything!
Have fun!