Kangaroo Flat Community Enterprise and Kangaroo Flat Leisure Centre donated $5000 each to Remembrance Parks Central Victoria for the restoration.

The money will go toward getting the chapel from its current skeleton stage to completion.

Central Victorian Remembrance Parks chief executive Graham Fountain said the donations were a result of the generous community spirit.

He said the generous offers showed the good will of the community and their desire to see a heritage building restored to its former glory.

He said the chapel was currently at the foundation stage with a skeleton frame.

Mr Fountain said it had been a long time coming since the 2012 fire damage.

"Finally, we are here and we can see the work has started," he said.

Mr Fountain said the rest of the work would now be carried out according to heritage regulations.

"We intend to remain conscious of the fact it is a heritage building," he said.

"We have contractors, a heritage advisor and the community behind us."

He said many community clubs had committed an amount of labour to complete unskilled tasks.

He said when the first community meeting was held, there was negative response to the plans to demolish the building.