The festival is run by the Tutukaka Coast Promotions Society and Scenario Events and takes place during August.
This year was the fifth time the event had been held, and aims to bring people and economic benefits to the community.
The festival uses arts, culture, sport and recreation to showcase the Tutukaka Coast and Ms Malcolm said everyone is passionate about their chosen activities.
She said this year was the first time the festival had entered the awards.
"We've matured as we've grown. You've always got to push yourself."
The other finalists in their category are Beach Series, Hawke's Bay Christmas at the Park, KPOP Showdown, Tutukaka Coast Winter Festival and Waitangi Tuwharetoa Ki Pukawa Festival 2017.
The winner of the community category will be announced at the Awards' Gala Evening on October 11 in Auckland.