Margison appealed to Lythe's former team-mates at the Warriors, the Mount Albert Lions and the Glenora Bears to contribute to the fund.
Former Warrior Awen Guttenbeil is working with the old boys' network to generate support for Lythe, who made five NRL appearances for the club in 2000, represented New Zealand Residents and played extensively on the Auckland club scene and in the old Bartercard Cup competition.
Warriors chief executive Wayne Scurrah said the club would donate $5000 towards the fund.
"Our hearts go out to Ben, Mardie and their family at this terrible time,'' he said.
A Warriors press statement said donations could be made via internet banking to:
Account name: Lythe
Account No: 38-9007-0327920-01