The artist has handed over the full amount of his £25,000 Mercury Prize cash to the Music Venues Trust, which works to protect the Britain's small concert spaces.
Fender was given the prize on October 16 as his third album the album was named the outstanding release of the last 12 months.
He has decided to donate the funds to the Music Venues Trust, in appreciation of the vital role grassroots venues played in his beginning days.
"As an artist would not have achieved my current career if it wasn't for all the gigs I performed around the area, and elsewhere, when I was just getting going," remarked Fender. "These venues are iconic, but they are facing challenges."
Beginning in 2023, more than 150 of these venues have permanently closed – roughly 16% of the entire UK sector.
Over the past year, well-known musicians including Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its efforts to help venues survive, by including a modest fee to their admission fees, which supports independent venues.
Sam Fender also participated, raising more than £100,000 on his recent tour to help 38 local spots across Britain.
These funds helped locations that were dealing with possible closure due to difficulties stemming from water damage, blazes and family tragedies, as well as licensing issues, conflicts and sound issues.
Other venues obtained funding support in upgrading facilities and sound and lighting systems that positively impacted musicians and concertgoers.
"The concept that revenue from shows in major spaces backs the smaller venues, where it begins for performers like me, is just logical," Fender has said.
He is among several artists to donate his Mercury Prize prize money to charitable organizations.
Back when Pulp received the trophy in the mid-90s for their record the album, frontman the singer declared that the group would contribute their prize money to the non-profit War Child.
In 2002, rapper and singer she split her award among several good causes, such as the NSPCC and a Sickle Cell charity.
"Additionally, I contributed a thousand pounds to my local community centre, to their classes, because I practiced gymnastics when I was younger and they required updated gear," the artist told outlets.
Previously, Ezra Collective donated their funds to the local youth club that nurtured their group, in addition to other independent music bodies.
Also the 1994 recipients they gave their winnings to a MS organization after a close contact was diagnosed the disease.
"Receiving the award was ample," stated singer the singer. "The cash was the bonus but we didn't need the extra, because we had the honor. So our victory touched somebody else's life."
In the past week, the Music Venues Trust announced it had rescued several grassroots venues in south-east England, by bringing them into community ownership.
The Joiners in that area and the second in that location were purchased under the public acquisition program, which is backed by Arts Council England and music fans who purchase "shares" in the buildings.