The 27 AAP legislators will donate a minimum of Rs 20 lakh from the MLA Development Fund.
"A decision was taken to donate money for the relief operations in Jammu and Kashmir at a meeting of AAP MLAs," senior party leader Manish Sisodia said.
"As per the provision, MLAs can donate money upto Rs 35 lakh for any natural calamity or disaster," an AAP leader said.
The party is yet to take a decision on whether it will donate the money to the Prime Minister's Relief fund or Jammu and Kashmir CM's Relief Fund or some other private fund.
He said the party has been mobilising relief material for the flood victims and had asked Delhi Cantt MLA Surinder Singh to take charge of the operations.