The Liverpool defender set up The 23 Foundation earlier this year to provide grants to young people on Merseyside.
The 23 Foundation, which takes its name from Carragher's team shirt number, aims to give children a better chance in life.
The footballing star says he plans to give the proceeds from his Liverpool testimonial to the Foundation.
He said: 'I was in Alder Hey as a child myself when I was first born and I hope The 23 Foundation can help children like people did for me when I was growing up.
'I've got my own kids and I don't think there's anything better than making a child happy.
'I was very fortunate to go to a good youth club and I've been very fortunate to be where I am playing for Liverpool.
'I'd like to think that maybe if I put something back, we'll have someone else going on to play for Liverpool or Everton, or getting involved in other sports. There are a lot of youth clubs out there helping kids to keep fit and stay interested in sport.
'I want the charity to help those clubs buy equipment and keep kids off the streets.'