Stormzy and his company have pledged £10m over the next 10 years in the "fight to finally try and even" the playing field for black people in the UK.
The grime star made the announcement to help organisations supporting racial equality and social justice following protests around the world in the wake of the death of George Floyd in the US.
In a statement released through his company, #Merky, the 26-year-old said: "The uncomfortable truth that our country continuously fails to recognise and admit, is that black people in the UK have been at a constant disadvantage in every aspect of life - simply due to the colour of our skin."
Image: The star was named best British male at the Brit Awards earlier this year
Stormzy, who joined a recent Black Lives Matter rally in the capital, grew up in south London.
Last year, he topped the charts with single Vossi Bop and became the first black British solo artist to headline Glastonbury Festival, before going on to be crowned best male solo artist for the second time at the Brit Awards earlier this year.
He said he is "lucky enough" to be in the position that he is, and that people who dismiss the idea of racism existing in Britain because of his success are wrong.
Stormzy said: "I reject that with this: I am not the UK's shining example of what supposedly happens when a black person works hard.
"There are millions of us. We are not far and few. We have to fight against the odds of a racist system stacked against us and designed for us to fail from before we are even born.
"Black people have been playing on an uneven field for far too long and this pledge is a continuation in the fight to finally try and even it."
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Stormzy's donation will support organisations, charities and movements involved in tackling racial inequality, justice reform and black empowerment in the UK.
He urged others who are able to also pledge to support similar causes.
Real name Michael Omari, Stormzy launched his own publishing imprint, #Merky Books, a collaboration with Penguin Random House, in July 2018.
It is due to publish the autobiography of Malorie Blackman, the author of the Noughts And Crosses books, in 2022, as well as a series of non-fiction books to launch in September, offering tips on topics from activism to writing.
Race and Revolution: Is Change Going to Come?
Sky News will broadcast a global debate show on Tuesday night at 8pm - looking at the issues raised by the Black Lives Matter protests, and examining institutional racism and how we fix it.
If you would like to be part of our virtual audience, and have a chance of putting a question to our panel, please send your name, location and question to email@example.com.