The star has given the full amount of his £25k Mercury Prize cash to the Music Venues Trust, which functions to save the Britain's independent music venues.
Fender was presented with the award on 16 October as his latest record his work was named the outstanding release of the previous year.
He has decided to give the cash to the trust, in acknowledgment of the essential function grassroots venues had in his beginning days.
"I personally would not have achieved this success if it hadn't been for all the shows I performed around the North East, and further afield, when I was just getting going," said the artist. "These venues are iconic, but they are in difficulty."
Since the start of 2023, at least 150 of these spaces have permanently closed – approximately 16% of the total UK scene.
Recently, top acts including Pulp, Coldplay, Katy Perry and Sheeran have all backed the Music Venues Trust in its attempts to support the industry, by adding a small levy to their ticket prices, which supports smaller concert halls.
Sam Fender also took part, generating over £100k on his recent tour to help numerous small stages across the UK.
These funds supported spaces that were confronting imminent closure due to issues arising from flooding, blazes and personal losses, as well as regulatory hurdles, legal disputes and noise complaints.
Some locations obtained funding support in improving infrastructure and sound and lighting systems that positively impacted musicians and fans.
"The idea that funds from concerts in major spaces supports the local stages, where it begins for performers like me, is just sensible," Fender has commented.
The musician is among several artists to donate his award funds to charitable organizations.
In Pulp received the award in the year 1996 for their record Different Class, frontman the singer declared that the group would contribute their cash to the non-profit War Child.
During 2002, rapper and singer Ms Dynamite divided her prize across a few charities, like the NSPCC and a Sickle Cell organization.
"Additionally, I donated a £1,000 to Highgate Newtown, to their classes, because I did gymnastics when I was a child and they required better apparatus," Ms Dynamite told outlets.
In recent years, the band gave their funds to the community center that supported their act, alongside other local music groups.
Also the 1994 recipients they gave their prize to a multiple sclerosis charity after a friend was diagnosed the illness.
"The victory was ample," said artist Heather Small. "The cash was the bonus but we didn't require the bonus, because we had the cake. So our victory impacted the lives of others."
Last week, the trust shared it had protected a couple of local spots in that region, by placing them under community ownership.
The Joiners in Southampton and the other in that location were purchased under the public acquisition scheme, which is supported by the arts council and music fans who buy "stakes" in the properties.
