Goulburn Valley Grammar School student Xan Booth said it was a personal connection that prompted him to raise more than $3500 for Grutzner House.
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The year nine student's grandfather Bruce McNeill spent six months at Goulburn Valley Health's acute aged psychiatric care facility, where he died a year ago.
“I decided to do (my school project) here because of the connection,” Xan said.
GV Grammar School personal development teacher Glen Edwards said students took on a range of projects that gave back to the community.
“During terms two and three our year nine students all do some form of community project,” he said.
“It's giving something back to the community they live in.”
While many students opted for assisting organisations such as the Salvation Army, Mr Edwards said Xan's project was unique.
This was reiterated by Grutzner House nurse unit manager Rebecca Maffescioni, who said it was rare to be given funds personally by a student.
“It is incredibly appreciated,” she said.
Xan said he raised $3543 by selling raffle tickets, with several local businesses donating prizes.
The first prize was accommodation at Bundalong, second prize was a straightener and hair dryer donated by Hair Trend, third prize was a box of goodies from Nixon and Maude and fourth prize was a voucher for Jeff Young Shoes.
Xan's family thanked all these businesses for their generous donations.