The organ, at St Peter's Church, Scorton, is in desperate need of repair - but it will take an estimated £45,000 to bring it back to its former glory.
Arthur Ashcroft, of the district church council, is hoping that the village community will get on board and help to raise the vital funds.
He said: "We first started talking about the restoration a couple of years ago, when an organ advisor was called in to have a look at it.
"He said it was worthy of preserving and so we decided to get the organ listed as our first step. This was key to proving how important it is."
The organ was awarded the Grade II listed status by the British Insitute of Organ Studies in June, under its Historic Organs Certificate Scheme.
Research into the history of the organ found that it dates from the time of completion of the church itself in 1879. The builder was John Nicholson of Worcester, whose father first established the organ building business in Rochdale.
John Nicholson left Lancashire in 1840 to set up business in Worcester, and the next time he returned to the county to work was in 1861 when he was responsible from building the organ in Manchester Cathedral. The organ is still in use today.
There is no formal published work on John Nicholson but his notebooks and handwritten lists were published in the late 1880s and Scorton St Peter appears as having been built in 1879.
Mr Ashcroft continued: "There is little evidence of any other work by this builder in the area. The organ is therefore regarded as being historically important.
"The casework of the organ is of conservative design, typical of Nicholson, but the superstructure itself was designed by the well known Lancaster architects, Paley and Austin who designed the church."
Mr Ashcroft said that a programme of restoration was created in 1973, but that this was mainly concerned with the console and tracker actions. Now the main threat, if the organ is to continue to be used, is the failure of the reservoir leatherwork and full restoration has been recommended.
Mr Ashcroft and the council are currently trying to gain as much interest as possible in the appeal, and will be organising several fundraising events.
They have already raised £5,000, and held an afternoon teas event at the church at the weekend with guest organists.
Applications may also be made to other funding sources.
It is hoped that Scorton Primary School children will be involved in the project, when it goes ahead. They will be able to visit Liverpool Cathedral and the restoration company, and lots of activities will be planned.