Six students at Devonport's Hillcrest Primary School were killed and three badly hurt when the castle and several inflatable Zorb balls became airborne during final-day celebrations in December.
Zoe Smith set up a GoFundMe page to help support the children's families, which received about 18,300 donations and raised $1,460,360 in the days after the tragedy.
Ms Smith, who grew up in Devonport, has started meeting with the families to make the necessary arrangements after unexpected delays and legal issues.
"I can now announce that we have commenced meeting with the families to make all necessary arrangements for payment of monies to the families," Ms Smith said in the post on Tuesday.
"This work commenced last week and some families have already received payments."
She said the families had already expressed "very humble gratitude for the generosity of so many people".
"I confirm that proceeds will be divided equally between the nine affected families and will be applied in the way that those families think is best for them."
Zane Mellor, Jye Sheehan, Jalailah Jayne-Maree Jones, Peter Dodt, Addison Stewart and Chace Harrison died in the incident, which is being investigated by the coroner.
A flood of tributes left outside the school following the tragedy were collected by Devonport City Council for use in a permanent memorial.
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