The Church Commissioners, who manage the church's 10-billion-pound investment portfolio, will use the money for a fund that will invest in communities affected by past slavery, and research and engagement related to its links with slavery.
A report commissioned by the church found last June that a predecessor of its investment fund, called Queen Anne's Bounty, invested significant amounts in the slave-trading South Sea Company in the 18th Century.
"There's no doubt that those who were making the investment knew that the South Sea Company was trading in enslaved people, and that's now a source of real shame for us, and for which we apologise," Gareth Mostyn, Chief Executive of the Church Commissioners, told BBC radio.
The report had relied on research from forensic accountants and academics to analyse early ledgers and other documents from Queen Anne's Bounty — which was merged with another body to form the Church Commissioners in 1948.
The company also received many donations from individuals who were likely to have profited from transatlantic slavery, by which enslaved Africans were transported to work in crop plantations mainly in the Americas, the report said.
The Archbishop of Canterbury Justin Welby said on Tuesday it was now time for the church to take action to address "our shameful past".
Welby, the spiritual leader of the worldwide Anglican Communion of about 85 million Christians and also chair of the Church Commissioners, said it was necessary to address the church's past transparently to face "our present and future with integrity".
(The baby is from God and not from the neighbor while the husband was out of town, just as Charles is his real father and not the horse trainer…)