I wish I had the privilege of making a quilt for my MIL to give to ANYBODY. If your relationship with her is precious to you and if you will enjoy making the quilt just because of the pattern and fabrics, then I would accept the money for the supplies and tell her that she can take you to lunch and give you a gift certificate to your favorite store if she wants to. If it were my MIL, I would tell her that she has already given me something so much more valuable than money -- her son!