The artist has donated the entirety of his £25,000 Mercury Prize cash to the Music Venues Trust, which operates to protect the United Kingdom's grassroots music venues.
He was given the award on mid-October as his new release his work was declared the top album of the last 12 months.
Fender has chosen to donate the funds to the MVT, in acknowledgment of the crucial part small stages fulfilled in his beginning days.
"I would not have achieved this success if it hadn't been for all the performances I performed around the North East, and further afield, when I was starting out," stated Sam Fender. "These venues are legendary, but they are struggling."
Since the start of 2023, more than 150 of these locations have ceased operations – about one-sixth of the total UK scene.
Recently, well-known musicians like the band Pulp, the group Coldplay, Katy Perry and Sheeran have all supported the MVT in its efforts to keep the scene afloat, by adding a modest fee to their admission fees, which supports local stages.
He also joined in, raising in excess of £100,000 on his 2024 arena tour to assist 38 local spots across Britain.
The money assisted venues that were facing imminent closure due to challenges stemming from floods, fires and family tragedies, as well as permit problems, court cases and sound issues.
Additional spaces were granted monetary aid in modernizing infrastructure and sound and lighting systems that helped artists and fans.
"The concept that revenue from concerts in major spaces backs the smaller venues, where it kicks off for artists like me, is just logical," Fender has stated.
Fender is not the first artist to give his honor prize money to worthy causes.
When Pulp won the prize in the mid-90s for their release the album, frontman the singer stated that the band would donate their prize money to the non-profit War Child.
In 2002, rapper and singer the artist divided her bounty between a few organizations, such as the children's charity and a Sickle Cell organization.
"And I gave a thousand pounds to the center, to their gymnastics program, because I did gymnastics when I was younger and they required new equipment," Ms Dynamite explained to a publication.
Two years ago, the band contributed their winnings to the community center that nurtured their act, alongside other grassroots music organisations.
And winners that year M People contributed their winnings to a MS organization after a acquaintance was identified with the illness.
"The victory was quite enough," stated singer Heather Small. "The cash was the bonus but we could do without the extra, because we had the honor. So our winning impacted somebody else's life."
Last week, the trust announced it had rescued a couple of small stages in south-east England, by placing them under public stewardship.
The first in that area and the other in that location were acquired under the community ownership scheme, which is supported by the arts council and enthusiasts who buy "shares" in the venues.