Wayne Murray, who runs the museum 'From Scardeburg to Scarborough' in the Market Hall and Vaults in St Helen’s Square, says it would be very upsetting if the medals left the town.
Mr Murray said: "It would be heartbreaking if Mr Booth’s medals left the town and ended up in a private collection.
"I thought because of everything that Mr Booth did to promote this town and everything he did for Scarborough, I thought the least I could do for him was to try and save his medals for everyone to see in my museum."
Alan Booth's MBE for services to Scarborough was awarded in 2005, and along with his Freedom of the Borough certificate and war medals are going up for auction on Thursday.
Lot 80 includes the MBE, associated certification, and other medals including his Malayan Campaign medal and Freedom of the Borough of Scarborough Certificate, which was bestowed on him in 1999, in its silver presentation case is estimated to reach between £400 and £600.
Mr Murray hopes to win a few lots at the auction which also include Mr Booth's town crier hand bells. He says he would put everything into an exhibition in the autumn when things are back to normal.
"They need to stay in the town where they can be seen and viewed to keep Mr Booth’s name alive," said Mr Murray. "I just hope the town can get behind us to help save these medals."
So far £620 has been raised, if you would like to donate you can contact Wayne Murray via his Facebook page here 'From Scardeburg To Scarborough' where there is a PayPal link to the fundraiser.
Mr Booth, who passed away last October, was a well-known ambassador for Scarborough with his work taking him across the world to promote the town. He was the town crier in Scarborough for 31 years.
Any excess donations will be used by the museum to fund memorial plaques to those who died during the Scarborough bombardment.