A special guest, Big Bear, will also put in an appearance.
They will also be having a parade of bears, followed by a prizegiving.
"The money we get from the Rotorua Trust covers a lot of the costs involved with putting the event on, including advertising and prizes as well as a certificate for each bear. It also means we can offer the activities like the bouncy castle and face painting at a small cost."
Gibson said the club didn't make much, if any, money out of the event but it was fantastic just to see the joy on the children's faces. Any profit goes into other community projects.
Rotorua Trust chairman Stewart Edward said the picnic was a fun event the trust was proud to support through a $750 grant.
"This helps to bring whanau together and we're happy to help assist in a small way."
Edward said the trust's kaupapa was about making a better Rotorua for all, and to do this it supported a wide range of organisations and events.
The grant was one of 13 approved in January, totalling $164,250.
The Teddy Bears' Picnic runs from 11am to 1.30pm at Kuirau Park. Registration for the bears is $2, face painting $2, bouncy castle $1, and a donation for the story teller. Also available are sausages $2, water $2, and fizzy drinks $1.
If it is wet, the picnic will be postponed until the next Saturday (February 24).