The star has given the entirety of his £25k Mercury Prize cash to the Music Venues Trust, which operates to save the Britain's independent music venues.
He was given the award on October 16 as his new release People Watching was named the outstanding release of the last 12 months.
Fender has opted to give the cash to the Music Venues Trust, in acknowledgment of the crucial part grassroots venues played in his initial steps.
"As an artist couldn't be pursuing this success if it wasn't for all the performances I played around the area, and further afield, when I was starting out," stated Sam Fender. "These locations are legendary, but they are facing challenges."
From early 2023 onward, more than 150 of these locations have shut down – approximately one-sixth of the entire UK sector.
Over the past year, major artists like the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its attempts to keep the scene afloat, by adding a minor surcharge to their ticket costs, which supports independent venues.
Sam Fender also took part, collecting in excess of £100,000 on his recent tour to help numerous local spots across the UK.
The donation assisted venues that were confronting potential shutdown due to issues arising from floods, fires and personal losses, as well as licensing issues, legal disputes and noise complaints.
Additional spaces obtained financial assistance in modernizing amenities and technical equipment that helped performers and concertgoers.
"The idea that funds from concerts in major spaces backs the local stages, where it begins for musicians like me, is just common sense," Fender has commented.
The musician is not the first artist to give his honor prize money to charitable organizations.
When the band won the award in the mid-90s for their record their work, lead singer Jarvis Cocker announced that the group would contribute their prize money to the non-profit the charity.
During 2002, musician the artist shared her award across several organizations, like the children's charity and a Sickle Cell charity.
"Additionally, I donated a grand to the center, to their classes, because I practiced gymnastics when I was a child and they required better apparatus," Ms Dynamite told the media.
Two years ago, they contributed their funds to the youth organization that supported their band, alongside other grassroots music organisations.
And the 1994 recipients the group contributed their award to a multiple sclerosis charity after a acquaintance was found to have the condition.
"Receiving the award was ample," said artist Small. "The prize was the cherry on top but we didn't require the cherry, because we had the cake. So our victory touched another person's life."
Recently, the MVT revealed it had rescued a couple of local spots in south-east England, by bringing them into community ownership.
The first in that area and the second in the city were purchased under the public acquisition initiative, which is funded by the arts council and enthusiasts who purchase "stakes" in the venues.