The artist has donated the full amount of his £25k Mercury Prize cash to the Music Venues Trust, which operates to protect the Britain's small concert spaces.
The star was awarded the award on mid-October as his latest record his work was chosen as the best record of the past year.
Fender has decided to give the cash to the Music Venues Trust, in recognition of the vital role grassroots venues played in his initial steps.
"I would not have achieved my current career if it weren't for all the gigs I played around the area, and further afield, when I was beginning," remarked the artist. "These locations are renowned, but they are struggling."
From early 2023 onward, more than 150 of these venues have shut down – approximately one-sixth of the total UK scene.
In the last year, well-known musicians like the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its initiatives to support the industry, by adding a minor surcharge to their admission fees, which goes to help local stages.
Fender also took part, collecting more than £100,000 on his recent tour to assist 38 local spots across Britain.
The donation helped locations that were facing potential shutdown due to challenges caused by water damage, fires and bereavements, as well as permit problems, conflicts and sound issues.
Some locations were granted monetary aid in improving amenities and sound and lighting systems that positively impacted performers and audiences.
"The idea that revenue from concerts in major spaces supports the local stages, where it all starts for musicians like me, is just common sense," Sam Fender has said.
The musician is far from the only musician to donate his award prize money to worthy causes.
In the band earned the trophy in the mid-90s for their release the album, frontman Jarvis Cocker announced that the act would contribute their prize money to the charity War Child.
That year, rapper and singer she split her bounty across several good causes, such as the NSPCC and a Sickle Cell charity.
"Additionally, I contributed a thousand pounds to Highgate Newtown, to their classes, because I did gymnastics when I was growing up and they needed updated gear," Ms Dynamite explained to outlets.
In recent years, the band donated their winnings to the community center that nurtured their act, as well as other local music groups.
Also the 1994 recipients they donated their award to a charity for MS after a friend was found to have the condition.
"Receiving the award was ample," said singer Small. "The cash was the cherry on top but we didn't require the bonus, because we had the cake. So our success impacted another person's life."
Last week, the MVT announced it had rescued a couple of small stages in south-east England, by transferring them to community ownership.
One venue in the city and The Croft in that location were acquired under the community ownership initiative, which is backed by Arts Council England and enthusiasts who acquire "stakes" in the properties.
