The star has given the full amount of his £25,000 Mercury Prize cash to the MVT, which functions to save the United Kingdom's small concert spaces.
Fender was presented with the prize on 16 October as his third album People Watching was chosen as the top album of the last 12 months.
The musician has decided to donate the funds to the Music Venues Trust, in recognition of the vital role local spots played in his early career.
"As an artist couldn't be pursuing my current career if it weren't for all the gigs I performed around the area, and further afield, when I was just getting going," remarked Sam Fender. "These venues are legendary, but they are in difficulty."
From early 2023 onward, at least 150 of these locations have ceased operations – approximately 16% of the whole industry in the UK.
Recently, top acts like Pulp, Coldplay, Katy Perry and Sheeran have all supported the trust in its initiatives to help venues survive, by applying a minor surcharge to their ticket costs, which supports local stages.
Fender also participated, generating in excess of £100,000 on his live tour to assist numerous grassroots venues across Britain.
These funds supported venues that were dealing with possible closure due to issues caused by flooding, blazes and bereavements, as well as regulatory hurdles, conflicts and neighbor objections.
Additional spaces obtained financial assistance in improving infrastructure and technical equipment that positively impacted performers and audiences.
"The concept that revenue from concerts in major spaces helps the local stages, where it begins for artists like me, is just sensible," the star has stated.
The musician is not the first artist to donate his award funds to worthy causes.
When they won the trophy in the mid-90s for their record the album, lead singer the singer announced that the group would give their prize money to the organization the charity.
In 2002, musician the artist split her award between a few charities, including the NSPCC and a Sickle Cell charity.
"I also gave a grand to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was a child and they required updated gear," the artist told outlets.
Previously, Ezra Collective contributed their winnings to the local youth club that nurtured their group, in addition to other grassroots music organisations.
Additionally 1994 winners the group gave their winnings to a charity for MS after a acquaintance was identified with the condition.
"Winning was quite enough," remarked vocalist Small. "The cash was the cherry on top but we didn't require the cherry, because we had the cake. So our winning touched somebody else's life."
In the past week, the Music Venues Trust revealed it had rescued several local spots in south-east England, by transferring them to community ownership.
One venue in the city and The Croft in the city were purchased under the public acquisition initiative, which is backed by a national body and enthusiasts who purchase "shares" in the properties.