The cash was raised at a tribute night to the former Motherwell and Celtic midfielder, who died of heart failure after collapsing during a match on December 29.
O'Donnell's father, Bernard, brother James and nephew David Clarkson attended the event on Thursday to accept an oil painting of the former Scotland international by Scots artist Robert Miller.
The evening at Motherwell Concert Hall was attended by about 1,000 supporters plus several of Clarkson's Motherwell team-mates.
Details of the memorial are still to be decided but it emerged on the club are in talks with Manchester United over a challenge match to mark the re-naming of the main stand.
The oldest of Fir Park's stands will be christened the Phil O'Donnell Stand at a ceremony and United are hoping to find time in their pre-season schedule to mark the occasion.