To begin with, Mr Bezos will invest around $2 billion from his own wealth into the fund, which will go towards homelessness charities that are already up and running, as well as helping develop early childhood education centres.
In his note announcing the organisation's launch on Twitter, Mr Bezos explained the idea behind it.
"By so many important measures the world keeps getting better, and it's one of the fantastic aspects of human nature that we humans never stop looking for (and finding) ways to improve things," he wrote.
"Our lives are better than our great grandparents' lives, and their lives were better than their great grandparents' lives before them.
"If our own great grandchildren don't have lives better than ours, something has gone very wrong."
However, while the fund seems admirable, it has also sparked an outpouring of backlash from critics, including writer James Bloodworth, who recently went undercover to expose the reality of Amazon's working conditions.
Bloodworth told the BBC there was "something slightly ironic" about Mr Bezos' announcement.
"There have been credible reports of Amazon warehouse workers sleeping outside in tents because they can't afford to rent homes on the wages paid to them by the company," he told the organisation.
"Jeff Bezos can tout himself as a great philanthropist, yet it will not absolve him of responsibility if Amazon workers continue to be afraid to take toilet breaks and days off sick because they fear disciplinary action at work."
There has also been a significant amount of backlash levelled against the CEO right across social media.
Others have also complained about Amazon's attempts to cut its tax bill as well as the company's intervention which led to a US law designed to raise millions to address homelessness to be scrapped.
However, Mr Bezos has made some charitable donations in the past.
In 2012, he donated $US3 million towards legalising same-sex marriage and has made much larger donations to the Bezos Family Foundation, which is run by his parents, as well as to the Fred Hutchinson Cancer Research Centre.
But he's also so far failed to sign up to The Giving Pledge, a commitment by the world's wealthiest people to dedicate most of their wealth to giving back to the world.
The Giving Pledge has been supported by other household names such as Richard Branson, Warren Buffett and Bill and Melinda Gates.
The announcement of Mr Bezos' new fund follows a call out he made last June when he asked the public for suggestions regarding how he could best help the world.
