The Pakistani schoolgirl, who is currently studying in Birmingham, said it was the "happiest moment of her life."
ITV News' Sejal Karia reports:
The grant will support the education of 40 girls in Pakistan, are aged between five and 12 years old. For security reasons the name of the organisation or the specific community will not be made public.
Fifteen-year-old Malala, set up a fund to support education rights for women in Pakistan after surviving being shot in the head by the Taliban in Pakistan in October last year.
ITV News reporter Faye Barker has the story:
Malala made the announcement last night in a video streamed at the Women in the World Summit in New York City.
When Malala was shot on October 9, the bullet entered just above her left eye and ran along her jaw, "grazing" her brain. It was later removed by surgeons in Pakistan before she was flown to the UK.
Jolie praised Malala for her courage in not cowering to her attackers. She said:
Here's what they accomplished. They shot her point-blank range in the head - and made her stronger. The brutal attempt to silence her voice made it stronger.
Malala said she was delighted to be announcing the grant. She said:
Announcing the first grant of the Malala Fund is the happiest moment in my life. I invite all of you to support the Malala Fund and let us turn the education of 40 girls into 40 million girls.
Working with the girls and their families, the organization will enroll the girls in school, offer a safe space for convening and provide them with resources and support to adapt to an educational environment, such as school uniforms, shoes, and learning materials.
Each family will receive a monthly stipend. The organization and the school will continue to work with the families and the community to highlight the importance of girls’ education.