Hi - I have an old version of Sonar (X1) that I would like to donate to a local school.
 
Is this allowed under the software license? Can someone please advise me on this issue?
Thanks!

Once you register, only you can "legally" use the product. It's very clear. You cannot sell or even give it away. 
You are purchasing the right to use the software, not the disk. 
And schools and such cannot use pirated or unlicenced software. 
There are many software companies that offer discounts for education purposes. 

Further, if the X1 license was used as the basis for an upgrade to a later version, that later license (and those for subsequent upgrades) is/are tied to it. Meaning, the older license is not 'freed up' when you upgrade. *You* can still use the previous version alongside the new one if you want to, but even if Cakewalk allowed license transfers - which it doesn't (and this is, as pointed out above, clearly stated in the EULA which you agree to when using the software) - that would still be a no-no IMO. 
 
(hope this comes off as intended, an attempt to clarify, not trying be pedantic)

I believe Cakewalk offers educational discounts.

They do, but Platinum is still $350 for the Academic license.  That isn't usually easy to swollow for some schools.  
 
Agree with the others though, based on the User Agreement, you can't give it to the school.  Best you could do is bring it in and use it to teach them.

Okay - thanks.

NeoSoul
They do, but Platinum is still $350 for the Academic license.  That isn't usually easy to swollow for some schools.  
 
Agree with the others though, based on the User Agreement, you can't give it to the school.  Best you could do it bring it in and use it to teach them.

$350 is a bit of change, but Artist or Professional would probably meet the needs of the school.  The bigger issue would be hardware, but perhaps that's being donated too.  If I was trying to donate a music production set up, I'd probably donate the hardware and somehow procure the educational license (buy it in my kid's name, etc.)

Sonar LE comes free with Tascam interfaces, there you go. Around $100 and your up and running. The interface is more important than the software. 
Then LE can be used to upgrade if need be. 
I bought X3 Studio for only $100 using X1LE as the doorway. 
 

Cactus Music
Sonar LE comes free with Tascam interfaces, there you go. Around $100 and your up and running. The interface is more important than the software. 
Then LE can be used to upgrade if need be. 
I bought X3 Studio for only $100 using X1LE as the doorway. 
 

Even better!