CrewChief is right - Teacher Appreication activities are very often a key part of PTO programs. Raising the morale of teachers by showing appreciation of their efforts very much benefits the children.
I've been involved in 3 parent groups (2 PTO, 1 PTA). All have had this as part of their budget. For our elementary, it was usually about $1000. We did small token gifts (like a votive candle), luncheons, candy, etc. But as far as "gifts" - what do you mean? We never bought elaborate gifts for teachers. A montly luncheon or food treat was common. Often it was donated, then once or twice a year we'd have it catered.
We also sometimes were able to give each of the teachers $25-$50 for classroom supplies. But that wasn't part of Teacher Appreciation.
Teacher Appreciation is a commonly funded activity for many parent groups. The belief is that happy teachers make happy schools. I personally agree. I don't know about an established 'standard' but for my last group we budgeted $1000 (of an approximate $20,000 annual budget) for 60 teachers. That plus many generous donations provided for Teacher Appreciation events throughout the school year.
I guess it all depends on how you interpret the "benefit the students" mandate.
Is there a good rule of thumb regarding how much, if any, of the funds riased through fundraising should be spent on gifts for teachers? These would be gifts that do not benefit the children or classroom, more of a "thank you" gift. I was under the impression that none of the money, raised through fundraising, should be used if it doesn't benefit the children. Am I nuts? Is there a good percentage to use as a guideline? Any and help is appreciated. Thank you!