The star has handed over the full amount of his £25,000 Mercury Prize cash to the trust for venues, which works to preserve the Britain's grassroots music venues.
The star was given the prize on 16 October as his third album his work was declared the best record of the past year.
The musician has opted to donate the funds to the Music Venues Trust, in appreciation of the vital role local spots had in his early career.
"As an artist wouldn't be doing this success if it hadn't been for all the shows I did around the region, and beyond, when I was beginning," remarked Fender. "These spaces are renowned, but they are struggling."
Since the start of 2023, over 150 of these venues have ceased operations – about 16 percent of the total UK scene.
Recently, top acts including the band Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all backed the trust in its initiatives to help venues survive, by including a minor surcharge to their admission fees, which benefits independent venues.
He also took part, raising in excess of £100,000 on his live tour to support numerous grassroots venues across England, Scotland, and Wales.
The money helped spaces that were dealing with potential shutdown due to issues caused by flooding, blazes and personal losses, as well as regulatory hurdles, court cases and noise complaints.
Other venues were granted monetary aid in improving infrastructure and technical equipment that directly benefitted musicians and audiences.
"The notion that funds from shows in big venues supports the smaller venues, where it all starts for artists like me, is just common sense," Sam Fender has commented.
Fender is not the first artist to contribute his honor funds to good deeds.
When the band won the trophy in the year 1996 for their record Different Class, lead singer Jarvis Cocker stated that the act would give their prize money to the non-profit the charity.
In 2002, musician Ms Dynamite shared her prize among multiple organizations, including the NSPCC and a charity for Sickle Cell.
"And I contributed a £1,000 to my local community centre, to their gymnastics program, because I did gymnastics when I was younger and they needed better apparatus," Ms Dynamite explained to outlets.
In recent years, they contributed their winnings to the community center that developed their group, as well as other independent music bodies.
And the 1994 recipients M People donated their winnings to a charity for MS after a friend was diagnosed the disease.
"The victory was quite enough," said singer the singer. "The prize was the cherry on top but we could do without the bonus, because we had the main prize. So our victory touched the lives of others."
In the past week, the Music Venues Trust revealed it had protected two small stages in south-east England, by bringing them into local control.
One venue in that area and the other in that location were purchased under the public acquisition program, which is backed by a national body and supporters who purchase "stakes" in the venues.