Peter Toulson, who died on Monday, sold the magazine from a pitch outside a department store in York's Parliament Street.
A friend of Mr Toulson started a fundraising page to help his partner Karen pay for his funeral costs.
The appeal has now exceeded its £3,000 target just a few days after being launched.
John and Julie McGall who established the fundraising site said they wanted to give Mr Toulson "the send off he deserves".
A message on the site described Mr Toulson as "a gentle giant".
"Always had a smile or friendly banter with both his customers and the general public.
"He was a dignified proud man, who for no fault of his own found himself falling upon hard times."
Donations to an online appeal will help to pay for the funeral of a popular Big Issue seller.