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And not necessarily for special events like holidays or birthdays.
MIL's friend sent us some money right before Henry was born. She knows we're strapped and this was before we'd decided to move home. Well, we took it and bought the boys a new dresser. Sam just had a tiny one and it barely accommodated his clothes, so it wasn't going to do both.
I sent her a nice thank you note explaining what we'd done with the money. In fact, that reminds me I need to email her a picture of the dresser we bought.
What do you do with cash gifts if it's not sent with a specific purpose (like my mom sent me cash to buy Sam's Christmas present, an easel from Ikea)?