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"This multimedia comedy cabaret extravagance will cure all ills, set society on a better path and bring to us world peace," Smith wrote on the event's website. "Or maybe not, but it will prove that life's just too SHORT to be hung up on the LITTLE things."
Smith said the event will include performances from comedians, musicians and "London's finest naked poets."
"I think it's really important to maintain a balanced sense of fun. That's why I'm creating a celebratory party. I've got various thoughts on what is a good and what is a bad small penis joke. And I do think humor is a great healer. So I'll just say 'keep laughing,'" Smith told i100.co.uk.
Smith said women will be allowed in with a donation and men will be admitted for the price of $0.77 per claimed inch of penis.
"You very often read that 5-7 inches is average and that's such a broad range. People walk away thinking that seven inches is average. It isn't. I wrote the poem in the first place partly inspired by the fact that one of my friends also told me that they suffered anxiety. They were six inches: There's absolutely no reason for them to. A lot of what I'm doing is talking to the average man and saying it's perfectly fine," Smith said.