Wellington: Two New Zealand activists have raised thousands of dollars for mental health in Gaza after an Israeli court ordered them to pay damages for writing an open letter that convinced singer Lorde to cancel her show in Tel Aviv.

Jewish-New Zealander Justine Sachs and Palestinian-New Zealander Nadia Abu-Shanab on Friday rejected the legal action which ordered them to pay $10,963 for causing mental harm to three Israeli teenagers who had purchased tickets to the concert.

Instead, the duo turned to a crowdfunding website which by Sunday had raised over $21,083.

"We would like to redirect the support extended to us back to Palestinians in need of mental health support," Sachs and Abu-Shanab wrote on the Give A Little website, adding that the money would go to the Gaza Mental Health Foundation.

"Emotional distress is a lived reality for Palestinians in Gaza, where over half of children suffer PTSD as a result of Israeli military attacks," the activists wrote.