The star has given the full amount of his £25k Mercury Prize cash to the Music Venues Trust, which functions to save the Britain's independent concert spaces.
Fender was awarded the prize on 16 October as his latest record his work was named the best record of the past year.
He has chosen to donate the funds to the Music Venues Trust, in acknowledgment of the essential function small stages had in his early career.
"As an artist would not have achieved my current career if it weren't for all the performances I performed around the region, and elsewhere, when I was beginning," remarked the artist. "These locations are iconic, but they are struggling."
Since the start of 2023, over 150 of these locations have ceased operations – about one-sixth of the entire UK sector.
In the last year, major artists like the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its efforts to support the industry, by applying a minor surcharge to their ticket costs, which supports smaller concert halls.
Sam Fender also took part, raising over £100k on his live tour to assist thirty-eight local spots across the UK.
The donation helped venues that were facing potential shutdown due to challenges stemming from flooding, blazes and personal losses, as well as regulatory hurdles, court cases and neighbor objections.
Other venues obtained funding support in modernizing infrastructure and gear that directly benefitted musicians and concertgoers.
"The concept that revenue from performances in large arenas supports the independent spots, where it all starts for performers like me, is just logical," Fender has said.
The musician is far from the only musician to donate his Mercury Prize funds to worthy causes.
When the band received the prize in the mid-90s for their album the album, vocalist Cocker announced that the act would give their cash to the charity War Child.
In 2002, musician Ms Dynamite split her award between a few charities, like the children's charity and a charity for Sickle Cell.
"I also contributed a thousand pounds to the center, to their gymnastics program, because I did gymnastics when I was growing up and they lacked better apparatus," Ms Dynamite shared with outlets.
In recent years, the band gave their funds to the local youth club that nurtured their group, alongside other grassroots music organisations.
Also 1994 winners they contributed their prize to a multiple sclerosis charity after a friend was identified with the disease.
"Receiving the award was quite enough," said artist Small. "The prize was the extra but we didn't require the cherry, because we had the main prize. So our success impacted somebody else's life."
Last week, the MVT shared it had saved several small stages in south-east England, by placing them under local control.
The Joiners in that area and The Croft in Bristol were bought under the community ownership program, which is supported by a national body and supporters who purchase "stakes" in the buildings.
