The New York Daily News reported that the 26-year-old "Songs in A Minor" singer said that her donation and related stipulation for Open Door Scholarships will help the funds get to those who deserve them the most.
"It's a reward for students ... who contribute to make this a better world," she said.
Keys' donation will come in the form of four $5,000 grants, with each of the grants being bestowed upon a deserving individual from Atlanta, New Orleans, New York's Harlem borough and Jacksonville, Fla.
The nine-time Grammy award-winner said her scholarship effort, which she plans to continue doing on an annual basis, would be detailed on a forthcoming Web site for potential applicants.
"We can do something to help find those bright minds that need a helping hand," Keys told the paper. "It all adds up."