Much of the donation is earmarked for the MSU football program.
"Supporting the football team was an easy decision," Izzo said in a statement, praising Coach Mark Dantonio as "a man of character, building a championship program."
"But what makes football special is that it truly benefits everyone across the university," he said. "Spearheaded by football's success, there is great momentum throughout all programs."
Izzo that after raising a family around Michigan State and becoming "entrenched in the mission of the university," it was time to return some of benefits he had received.
"With these blessings, we felt it was time to make a financial contribution," he said.