The event has grown over the years with around 130 attending last Christmas.
"It's increasing with quite a few people coming every year. We have a few regulars. Some come up to you and ask if they can book in for the next year. There is nothing worse than being alone at Christmas time."
The team were blown away by the community response this year, Mr Jackson said.
As a result, Santa will be handing out gifts to children attending.
Mayor Lyn Patterson had canvassed businesses for donations and funding.
"We don't need any food now. Businesses have really pulled out the stops to help us this year. Trust house has been amazing and Countdown has given us $1000 - everyone has been so giving. It builds that community spirit," he said.
However, they need volunteers to help prepare vegetables, serve food, set up, clean up and to mingle with and welcome guests.
They also urgently need entertainers to keep everyone occupied - from musicians to face painters and story tellers.
Mrs Patterson, who has been involved with the community Christmas lunch for four years, said she enjoyed being involved.
"It's a great community event. It's good to see so many people - from the elderly to families out and having a fun lunch," she said.
If you would like to attend the luncheon, you need to pre-book by calling Caroline Nyboer at Masterton Community Church by Friday December 20 on (06) 377 1598.
If you can volunteer as a helper or entertainers ring the same number.