The memorial has been mooted for some years, but it was only recently confirmed it would be built on a Dunedin City Council reserve at the intersection of George and Albany Sts.
Baxter - father of poet James K. Baxter - refused to fight when conscripted in to the army at the height of World War 1.
Despite his conscientious objection, Baxter was shipped to France where he was subjected to great pressure to fight, including physical punishment.
The Archibald Baxter Memorial Trust needs about $300,000 to complete the project, and the grant was a major step towards that target, chairman Kevin Clements said.
The trust's July grants round resulted in $387,871 awarded to 24 community organisations.
Other grants included continuation of its annual grants to Dunedin Symphony Orchestra ($70,000) and the Otago Medical Research Foundation ($70,000) to support early stage medical research.
Recipients: Alexandra Community Advice Network $1500; Central Otago District Arts Trust $5755; Otago Cricket Association $13,140; Dunedin Curtain Bank Trust $7000; Dunedin Symphony Orchestra $70,000; ChatBus Trust $16,500; Otago Settlers Association $5000; Otago Medical Research Foundation $70,000; Archibald Baxter Memorial Trust $75,000; Rotary Park Kindergarten $2000; Otago Malaysian Students Association $1000; Waitaki District Council - Safer Waitaki Coalition $2629; Awamoa Bowling Club Inc $3200; South Island Secondary Schools Netball Association $7500; Tangata Whenua, Community & Voluntary Sector Research Centre $7500; Project Litefoot Trust $45,647; Wellington Museums Trust $2000; NZ Special Olympics Lower South Island Regional Council $8000; Maniototo Golf Club $5500; Aspiring Biodiversity Trust $8000; Snow Sports NZ Inc $11,500; Wanaka Search and Rescue Inc $15,000; Upper Clutha Music Festival $1000; Wanaka Golf Club $3500.
