The Canadian star, 32, received the cash for a private 45-minute show in front of the dictator's clan at a hotel in Italy, but the Libyan revolution made her realise she shouldn't keep the money, reported Daily Mail.
"In 2007 I was paid to perform for members of Colonel Gaddafi's family at a hotel in Italy. Recently I donated the USD 1 million fee to the Free the Children charity. It was the first private show I'd ever done and I wasn't really aware whom I was performing for.
"Straight after the show I had a strange feeling that something wasn't right. It was only when the revolution was taking place in Libya that I started educating myself about the country and its rulers. That's when I realised that I had to make amends," said Furtado.