The star has donated the full amount of his £25,000 Mercury Prize cash to the Music Venues Trust, which works to preserve the UK's small live music spots.
Fender was awarded the cheque on mid-October as his third album People Watching was named the outstanding release of the last 12 months.
The musician has opted to hand the money over to the trust, in acknowledgment of the crucial part grassroots venues had in his initial steps.
"As an artist wouldn't be doing what I am doing today if it hadn't been for all the gigs I did around the region, and beyond, when I was starting out," stated the artist. "These spaces are iconic, but they are struggling."
From early 2023 onward, over 150 of these venues have permanently closed – roughly one-sixth of the total UK scene.
In the last year, well-known musicians like the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the trust in its efforts to support the industry, by applying a small levy to their ticket prices, which supports local stages.
Sam Fender also took part, raising more than £100,000 on his live tour to support numerous local spots across England, Scotland, and Wales.
The money supported locations that were confronting potential shutdown due to difficulties caused by water damage, blazes and family tragedies, as well as permit problems, conflicts and neighbor objections.
Other venues received funding support in upgrading amenities and sound and lighting systems that directly benefitted artists and fans.
"The notion that revenue from concerts in big venues backs the smaller venues, where it begins for artists like me, is just common sense," the star has commented.
Fender is not the first artist to give his honor winnings to good deeds.
When the band received the award in the year 1996 for their album Different Class, lead singer Cocker declared that the act would give their winnings to the non-profit War Child.
That year, artist the artist split her prize across multiple good causes, like the NSPCC and a Sickle Cell organization.
"Additionally, I donated a £1,000 to my local community centre, to their gymnastics class, because I practiced gymnastics when I was growing up and they lacked better apparatus," Ms Dynamite told the media.
Two years ago, Ezra Collective gave their prize money to the community center that nurtured their act, as well as other grassroots music organisations.
And the 1994 recipients they gave their prize to a charity for MS after a close contact was found to have the illness.
"The victory was quite enough," stated singer Small. "The prize was the bonus but we didn't need the cherry, because we had the honor. So our winning affected another person's life."
In the past week, the trust revealed it had rescued a couple of grassroots venues in south-east England, by bringing them into public stewardship.
One venue in the city and the second in Bristol were bought under the Own Our Venues initiative, which is supported by a national body and supporters who acquire "shares" in the venues.