The challenge is aimed at providing cash for projects in schools in disadvantaged areas and schools that have pupils with additional needs or disabilities.
An independent board of trustees has chosen 14 schools to take part.
Projects that schools want to raise funds for range from transforming playgrounds, building new sensory areas and outdoor learning spaces, books, equipment and more.
The challenge started on February 25 and each school has until March 22 to raise funds for their project.
The school raising the most cash will win £5,000 from Cash for kids to go towards their project and a five runners-up will get £2,000 each.
Seacroft Grange Primary School's pupils, staff and parents are busy fundraising with events including a raffle, bun sales and a table top sale .
Staff have taken part in a bake off challenge and Parent Teacher Association members are doing a sponsored walk around Roundhay Park on Monday (March 18).
Parent Teacher Association member Nikki Gale said the school is raising cash to create a sensory area in the playground for children wth special educational needs and disabilities.
She said the school is also seeking to create outdoor canopy shelters in the playground and recycling centres to educate children about the environment.
A statement from a Seacroft Grange spokeperson on the Radio Aire website reads: "We hope to invest all donations - and hopefully Cash for Kids Prize money - into making our school grounds a better place for supporting positive mental health.
"We will do this through creating sensory play eg den building, tee-pee hidey holes, story-telling circles and other areas away from the hustle and bustle of the main sports-focused play areas.
"We would also like to create more gardening opportunities which is good for physical and mental well-being and we will be making an investment to make school a greener environment by creating school recycling centres."
The YEP’s #SpeakYourMind campaign for 2019 is focusing on children’s mental health.
The 13 other schools taking part in the challenge are Myrtle Park Primary School; All Saints C of E Primary School; Greenhill Primary School; Lighthouse School; Penny Field School - North West SILC; Hill Top C of E Primary School; Newlands Primary School; Pivot Leeds East; Springwell Academy Leeds South; St Francis of Assisi Catholic Primary School; Lower Wortley Primary School; Castleton Primary School; White Laith Primary School.
To donate to any of the 14 schools, go to www.cashforkidsgive.co.uk/campaign/cash-for-kids-school-challenge-2019/