Members of Wanaka Quilters and non-club friends pooled their resources to design and make the medallion-style applique quilt, which they hope to have finished within three days or by noon today at the latest, when they have to vacate their venue.
They are based in the Lake Wanaka Centre foyer, where they are also selling $2 raffle tickets for the queen-size quilt.
Wanaka quilter Chris Bartlett said she was prompted to suggest the fundraiser because of the trauma faced by the family of her Australian daughter-in-law, Michelle King.
Ms King is married to Wayne Bartlett, who was raised and educated in Wanaka. The couple now live in the Hunter Valley, Australia.
Ms King's parents, grandparents, and uncle and aunt lived in Marysville, about 100km northeast of Melbourne. They all survived the fire.
The number of people killed in the alpine resort town stands at 36. At one point, it was feared up to 100 of the town's 500 residents had been killed.
Police remain suspicious about the cause of the Marys-ville fire, which started at the Murrindindi mill.
While Ms King's parents' home was not destroyed, her other family members lost their homes and possessions.
Mrs Bartlett said she was incredibly relieved the family had survived and felt very much for Ms King, who was sitting university exams the week of the fires and "didn't know whether she was Arthur or Martha".
"Her parents were incredibly lucky. Everyone else in their street lost their houses and their doormats were all that were burnt."
The unfinished quilt was a big hit with people passing by this week.
Robyn van Reenen said the group had printed 3000 tickets and had already sold many of them.
"We were absolutely chuffed because a young guy came in and gave us $50 but didn't want a ticket, even though we told him he would earn Brownie points with his mother if he won it," Mrs van Reenen said.
Another young man also caused a laugh when he bought a whole book of tickets and then came back to put his mother's name on them because he didn't want his name published if he won.
