The star has handed over the entirety of his £25k Mercury Prize cash to the Music Venues Trust, which operates to save the UK's independent live music spots.
The star was given the award on mid-October as his third album his work was named the best record of the past year.
Fender has opted to hand the money over to the trust, in acknowledgment of the vital role grassroots venues played in his beginning days.
"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 North East, and further afield, when I was beginning," said Sam Fender. "These spaces are legendary, but they are facing challenges."
Beginning in 2023, more than 150 of these locations have shut down – approximately 16 percent of the entire UK sector.
Recently, top acts such as Pulp, Coldplay, Katy Perry and Sheeran have all backed the trust in its attempts to help venues survive, by applying a small levy to their ticket costs, which goes to help local stages.
Fender also joined in, collecting more than £100,000 on his live tour to help numerous grassroots venues across Britain.
The money helped venues that were confronting possible closure due to issues arising from water damage, blazes and bereavements, as well as licensing issues, legal disputes and noise complaints.
Other venues received monetary aid in modernizing facilities and gear that directly benefitted artists and concertgoers.
"The notion that funds from shows in big venues backs the smaller venues, where it kicks off for artists like me, is just common sense," Fender has commented.
The musician is not the first artist to donate his Mercury Prize winnings to worthy causes.
When Pulp earned the prize in 1996 for their release their work, vocalist the singer declared that the group would contribute their prize money to the charity the charity.
In 2002, musician Ms Dynamite divided her prize between a few charities, including the children's charity and a Sickle Cell charity.
"I also gave a £1,000 to my local community centre, to their gymnastics program, because I practiced gymnastics when I was growing up and they needed new equipment," the artist shared with a publication.
In recent years, the band gave their winnings to the local youth club that nurtured their band, in addition to other local music groups.
Also the 1994 recipients M People gave their award to a MS organization after a friend was found to have the condition.
"The victory was quite enough," remarked singer the singer. "The cash was the cherry on top but we didn't need the cherry, because we had the honor. So our success affected somebody else's life."
Recently, the trust shared it had rescued two small stages in the South East, by placing them under local control.
The first in Southampton and The Croft in the city were bought under the public acquisition scheme, which is supported by the arts council and supporters who purchase "shares" in the venues.