The balance of the grant will go to purchasing four oxygen concentrators for the hospice.
The Devitts, who recently retired, wanted to make the grant as a gesture of appreciation for what the hospice did for their daughter.
"We knew that would benefit people in the area where the funds were raised," Mrs Devitt said.
Hospice community nurses made regular visits to Mrs Morrison and her husband Brett's Papamoa home, and she visited the hospice for massages.
In her final days the family found comfort by her bedside at the hospice - a bed an eternally optimistic Mrs Morrison told them all was "very comfy".
"Even though there were other people there it didn't feel like it, it was just like our second home," said Mrs Morrison's sister, Jenna Devitt.
Even her beloved dog, Abby, was made to feel welcome. "Abby was here too, with Sarah, which is great because Sarah loved Abby so much," Miss Devitt said.
Hospice fundraising manager Trish Rae said ticket sales for the concert presented the opportunity to double or triple the generous grant.