Kate, 45, passed away earlier this month after a year-long battle with melanoma.
She was widely recognised as an inspirational teacher and mentor to many young people, both as head of drama and house dean at Wakatipu High School, and in the community.
Hundreds of people attended her funeral at Moonlight Stables, near Arrowtown.
One of her final wishes was that a foundation was set up to support aspiring young artists and sports people.
The Kate Moetaua Foundation Endowment Fund was set up by the Wakatipu Community Foundation (WCF) two weeks ago and thousands of dollars in donations have already been made through its Givealitte page.
WCF will administer the fund but Kate’s children Anika, 15, Aya, 10, and Malia, 8, will work through applications from youngsters and choose who benefits from their mum’s legacy.
Husband Teaukura Moetaua says: “We had talked about it a while ago and we talked about it again before she passed.
“It was one of the things she wanted us to try and get started, which we have.
“It’s good for the girls and myself too, when they’re reading the applications they’re carrying on the work their mum loved doing.”
The family is meeting with WCF this week and news on the application process will follow in the coming months.
“Those guys have been fantastic, helping us establish it. And we’ve already had lots of support from the community.”
Fundraising activities are being planned.
