Local people responded superbly, with a wide range of schemes ranging from charity bike rides to sheep race nights generating cash.
More than £25,000 was raised, which included money from the council and the Galloway Association of Glasgow.
And their efforts were enough to sway the Heritage Lottery Fund to award the final £33,000 needed to allow work to start.
Kirkcudbright Provost Lesley Garbutt said: “We’re obviously delighted that we have got the grant and it’s really because of the community support.
“The community spirit has been fantastic and without their fundraising efforts we wouldn’t have been able to get this grant.
“The Galloway News has been absolutely superb in supporting us – we certainly can’t fault that.”
Local councillor Tommy Jacques added: “We’re all delighted, the efforts of local people were excellent and particular mention has to go to David Devereux of Stewartry Museum for doing the application.”
Dr Devereux told the News that a file of our coverage of events – from the week the graves were damaged through all the fundraising schemes – had formed part of the application.
Galloway News editor Kenny Barr said: “It’s a brilliant boost. The people of Kirkcudbright are clearly very determined and if they want to achieve something they will work hard until they succeed.
“Raising this much money in a year is incredible and I am delighted that the News was able to play a part.”
More than 40 graves were damaged when two men – Christopher Frost of High Street, Dalbeattie and Alexander McIntosh, of Millburn Avenue, Dumfries – went on a drunken rampage through the cemetery on June 21 last year.
They were each jailed for nearly three years at Kirkcudbright Sheriff Court in September.
Local MSP Alex Fergusson was delighted to hear the damage they caused can now be put right.
He said: “It is absolutely tremendous that the Heritage Lottery Fund is able to underline the excellent efforts from local people by giving such a large sum to this cause.
“It just restores your faith in human nature. The public reaction was heartwarming – they just weren’t going to sit back, they wanted to do something about it.
“It is also good that such a local issue can be supported by a national body such as the lottery.”
Dumfries and Galloway MP Russell Brown added: “Kirkcudbright has a strong community spirit and we’ve seen that in action here.
“Local people are to be commended by how they’ve rallied together and raised the money to restore the cemetery. The Heritage Lottery money is a great boost for the town and I hope work will now start as soon as possible.
“This is a great example of how a wonderful community like Kirkcudbright can work together to turn around a truly awful event.”
As well as repairing the damage, there are also plans to improve paths to the cemetery, erect an information panel and even train volunteers to offer tours.
Colin McLean, head of the Heritage Lottery Fund in Scotland, said: “We are delighted to be able to support this project at St Cuthbert’s Churchyard which will encourage local people to get ‘hands on’ in caring for this part of their heritage while learning more about the people that shaped their community into what it is today.”