Canon Law 872 specifies that a godparent must be at least 17 years old and have received the Sacraments of Baptism, Eucharist and Confirmation. Parents may choose one godparent (Christian Witness) that is of another Christian Religion whom they determine to be a good example of Christian living for their child.
There is to be only one male sponsor or one female sponsor or one of each.
Godparents are to be examples of faith to the child and give witness to the good news of Jesus Christ in word and example.
The birth mother or father are not to serve as godparents.

The role of a godparent is summed up in the Catechism of the Catholic Church: “the godparents must be firm believers, able and ready to help the newly baptized on the road to Christian life.” Godparents help the parents in the faith life of the child being baptized. Godparents are positive examples of living the Catholic faith and therefore should be active members of a parish, have received confirmation, and if married have been married in the Church.

From Fr. Jon  Holy Family Catholic Church:
In my years as a priest, even before I was named pastor of Holy Family, I would often be asked to attest to an individual seeking to be a godparent. Unfortuantely, many times it was a person who was not a practicing Catholic, yet wanted me to indicate that he or she was fit to be a godparent. I thought this would be a good idea then to visit the role of godparents and sponsors in the Catholic Church. 
As we may recall, the early Church was fiercely persecuted. Many seeking baptism and admission into the Church had to do so in secret. Sponsors, therefore, became a necessary condition to attest to the integrity of the candidate. It was a way for the Church to ensure that the person seeking baptism was not a spy and that he or she was actually sincere in their desire to live the Catholic faith. In the case of infants, the sponsor or in Latin ;patrinus':'godfather' would take on the responsibility of making a profession of faith on behalf of the child and assist his or her parents in their education in the faith. 

I'm not sure how it came about but there is a false idea that the godparents take on the role of parents if something should happen to a child's biological parents. This is false. The roles of a godparent hinges on being a witness. A godparent must be a confirmed, practicing Catholic, one who strives to live the Catholic faith by attending Mass regulary (weekly), making use of the Sacrament of Confession as needed, practices daily prayer, and who lives by the principles of the Catholic faith-loving God and neighbor. A person who does not attend Mass, is in a irregular marriage, whose life stands in oppostiion to the morals and principles of the Catholic disqualifies him or herself from being a godparent. The Code of Canon Law of the Catholic Church (para.874) explicitly lays out these requirements.
Choosing a godparent, therefore, should not be based on blood relationship or friendship. A godparent, which is a special role in a child's life, as well as a sponsor for Confirmation, ought to be a person whose life bears witness to the Catholic faith, it must be someone who is trustworthy in helping their godchild attain salvation. Choose wisely then!

God Bless,
Fr. Jon
 

Godparents have to meet those requirements because their role is to be an example of living the Catholic faith. If they are not confirmed, what does that say to the child about the importance of confirmation? If they are not married in the church, what message does that pass to the child about the importance of the sacrament of marriage?

He may indeed be a really good person but being a good person is only one part of being a godparent. Someone who has not received any of the sacraments cannot be an example of living the faith in a meaningful way.

It is indeed unfortunate but we need to remember that the role of godparent is for the spiritual benefit of the child not the godparent’s self-esteem. Not choosing a particular individual does not make him a bad person, it simply means he is not spiritually in a place where he can act as a kind of mentor in the Catholic faith.

No one can be a godparent who is not at least baptized. It would be an absolute contradiction to have an unbaptized person officially be a role model for the baptized. However, if the person is scheduled to receive his confirmation at a later date or have his marriage validated by the Church then exceptions can be made in anticipation of those events taking place. Sometimes there are also cultural traditions that can be incorporated so that individuals can be included in some manner. Ultimately if there are serious issues in choosing godparents that meet all of the requirements it is important to discuss the matter with the parish priest who will be performing the baptism. He might be able to find a compromise that meets the spirit of the law while accommodating the realities of an imperfect world.