The Charlie's Angels star, who lost her battle with cancer in 2009, set up the Farrah Fawcett Foundation before her death to assist those battling the disease.
Bosses of the organisation have now presented The Barbara Ann Karmanos Cancer Center in Detroit, Michigan with the charitable sum to establish the Farrah Fawcett Fund for Patient Assistance at Karmanos.
The grant will provide assistance to patients being treated at the facility and help them handle the costs of medication, gas, housing expenses, bills, and other basic daily needs.
Larmender Davis, director of Social Work and Support Services at Karmanos, says, "Many of our patients need help with everyday expenses as they cope with their cancer treatments. It's wonderful that this foundation has recognised the needs of our patients, particularly those who have limited resources. This grant will ease the minds of many of our patients so they can focus on their recovery."