I'm a mom of four and my kids have a godmother who is German and her mom is German and was born in German. There godmother studied her higher education in Germany and she speaks German and her kids studied their higher education in Germany. Can I ask for the German citizenship for my kids or she can because she is there godmother?

Nope, there is no family link there at all..

I agree with CurlyBen. NO family connection at all.

A 'godmother' is not a blood relative, so of course not.

Read this. http://germany.usembassy.gov/acs/dual_nationality/