So sorry for your loss. You've already received lots of great suggestions as to what to do with this quilt.
I'll add another one ... it's also to give it to Hospice, but rather than as a fundraiser, or on one of the patient beds ... offer it to them to use as a Passage Quilt. Many Hospice's use quilts to cover the body on the gurney as they take it down the hall to the exit door, to the funeral home van.
It would be a perfect way to honour your MIL, and to comfort other families in their loss.
I hope to have my first Passage Quilt all put together today, and ready to send for quilting.