Answer:
The needed equation is:

The amount of Theo's donation = $ (4.5)
Explanation:
Let us assume the amount of Theo's donation = $ p
Now, his grandfather added $4 to the donation.
So, the New amount = Theo's amount + Grandfather's share
= $p + $ 4 = $ (4 +p)
Again, the half of the total amount =

So, the amount donated to the charity =

But according to the question, amount donated = $4.25

Hence, the amount of Theo's donation = $ p = $ (4.5)