The Lions Club has already allocated the money to various towns within the district, aimed at helping the suffering communities and encouraging people to shop locally.

The RFBI has been helping people in need since 1939 and made the donation to support local communities during the struggle of drought, Lions district disaster chairwoman Anne Jones OAM said.

"It's all about looking after the personal needs, health and wellbeing of the farmers and their families," Ms Jones said.

"We sometimes forget that it's not only just the animals that need to be looked after, it's all about the humans, and RFBI have very much identified the need."

The Lions Club and the RFBI representatives both felt very strongly about the donations going directly to the aid of the farmers and the communities, RFBI board chairman David Adams said.

"And it's not only just them - the whole thing is a flow-on effect, because if they can't get their car serviced or if they can't buy groceries for this week and next, the local supermarket and bakery are suffering too, so it's a knock-on effect for the local community."

Both organisations believe supporting farmers with donations such as this one benefits whole communities and that city people should keep supporting rural people.

Lions past district governor John Davis said: "They are our engine room keeping us afloat."

The RFBI previously donated $175,000 to buy 1200 bales of hay in May, helping 150 central NSW farmers feed their starving stock.

In the past financial year, the organisation gave $493,000 to fund research into issues such as Alzheimer's disease, help people in need and provide children with wheelchairs.