Hi E.,
I'm a room mom, and I know what you mean about all of this adding up. End of year teacher gifts are pretty common, but it used to be a small token from each individual student to the teacher. Over the years, this tradition has morphed into the tendancy to go over the top in some cases.
As a many year room mom, I have done it both ways, depending on the class and the general desire of the other parents. In my son's preschool, we did go in as a group for end of the year gifts. It seemed to be what most parents wanted to do, and some of them did their own thing as well.
Last year in Kindergarten, we collected group donations for the holidays, again for our teacher's birthday in April, and then for teacher appreciation the first week in May. In that case, I just felt like it was too much to ask our parents for another donation two weeks later for end of the year gifts. (We also had a student teacher/assistant). I did ask several of the parents in our K class what they'd prefer, and the consensus was to have each family do their own gift for end of the year.
Back to this year: We just finished staff appreciation last week. Not only did we have our teacher, but we were assigned a specialist teacher who doesn't have a regular class. Our class was very generous, and so, once again, I really don't want to ask for another donation, which I'd have to do in the next week in order get it collected and the gift purchased by the end of the school year. From what I've heard from our parents so far, I think we will probably go the route of each family doing their own thing again.
Your room parent should ask or invite parents to be involved in the gift, not inform you or imply that you have to! I always add that it is completely voluntary and that each family should feel free to do whatever they choose.
You should do whatever you feel comfortable doing, whether it's participating in the group collection or doing your own thing (which can be anything from a simple note/drawing from your child and one from you thanking her for all she did throughout the year to any type of gift/token you'd like to give). It's always your choice!
Best wishes to you and your family.
J. F.