Stanford, who lives in Antigua, will put part of the cash towards the second Stanford 20/20 tournament in 2008 which features 21 Caribbean national teams.
Each competing team will also receive funding for preparation of the tournament, which will award $1 million prize money to the winner.
Stanford said: “I have committed my resources and I believe that within the next three years we will have a world beating West Indies team again.
"I have said over and over that this region has the best cricket players in the world. We just need to harness this talent, steer these players in the right direction, reward their efforts and raise the standard of professionalism all around.”
