The singer said 100 percent of the money raised will go to her "My People Fund" which she started last week.
The telethon is scheduled for December 13 in Nashville.
The My People Fund was established by the Dollywood Company and the Dollywood Foundation, and will provide $1,000 each month to Sevier County families who lose their homes.
Anyone who would like to contribute to the My People Fund should visit dollywoodfoundation.org.