Organised by Rotarians from Ironbridge, Telford Centre, Wellington and The Wrekin, teams are this week busy getting all the post ready to send to applicants.
Peter Seaward, chairman of Telford Tree of Light and Wellington Rotary Club, said last year had been a record-breaking year, but this year was set to be bigger and better than ever before.
He said: "Since the appeal started 20 years ago it has generated over £460,000 for worthy causes. We would like to make it £500,000 this year. With people's support and by reducing our postage costs we can reach that total."
Names are displayed on lists around the Tree of Light in Telford Shopping Centre, at Wellington Market and in the windows of Tranter Lowe's offices in Oakengates and Dawley, and inside Truffles Café in Ironbridge.
Names are also displayed on the Tree of Light website and in the Telford Journal. More than £38,000 was raised through the appeal last year.
The lights on the tree and publication of the first list will be on November 12, 2015 in Telford Town Centre at 4.30pm. The Salvation Army band will play carols from 4pm.
Mr Seaward said: "The Telford Tree of Light would not be possible without the support of the four Rotary clubs of Telford and the many corporate sponsors who contribute so that every penny donated in memory of a loved one can be passed to our nominated charities."
He urged people to get their application forms in as soon as possible.
Mr Seaward added that this year they had changed the process slightly, with the application now being sent out with the greetings card.
For all the information visit telfordtreeoflight.org.uk