Ford came under fire earlier this year when he admitted to smoking crack after an incriminating video of him doing so surfaced.
Ford didn't face criminal charges for his actions, but Toronto Star reporter Daniel Dale sued the mayor for libel, saying the mayor lied about him during an interview on VisionTV, Canadian Broadcasting Corp. reported Saturday.
Crowdfunding website Indiegogo had raised $1,872 as of Sunday, with a goal of $50,000. Under crowdfunding rules, if the site doesn't reach its goal amount within 60 days, the money is returned to the donors.
"It's time for Torontonians to stand up and say enough is enough. We now have to stand against these special interest bullies and show them that this harassment has to stop," the campaign page said.