He also challenged big companies and corporations to follow his lead.
Schools in the US city are being threatened with early closure this summer or laying off staff because of funding shortages.
Speaking to reporters he said: "This isn't about politics, this isn't about posturing, this is about taking care of the kids."
Chance handed over a giant cheque to students at a primary school in the West Chatham area of Chicago, part of its infamous South Side.
He grew up the area and his lyrics often reference his childhood.