The artist has handed over the entirety of his £25,000 Mercury Prize cash to the Music Venues Trust, which works to protect the UK's grassroots concert spaces.
He was presented with the prize on October 16 as his new release the album was named the best record of the last 12 months.
He has decided to donate the funds to the Music Venues Trust, in recognition of the vital role small stages fulfilled in his initial steps.
"As an artist would not have achieved my current career if it hadn't been for all the gigs I played around the North East, and beyond, when I was beginning," said Fender. "These venues are renowned, but they are struggling."
Since the start of 2023, at least 150 of these locations have permanently closed – roughly one-sixth of the whole industry in the UK.
In the last year, major artists like Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all backed the MVT in its efforts to support the industry, by including a modest fee to their admission fees, which supports local stages.
Sam Fender also took part, generating more than £100,000 on his recent tour to support 38 small stages across Britain.
The money helped locations that were facing possible closure due to difficulties stemming from water damage, fires and bereavements, as well as licensing issues, court cases and noise complaints.
Other venues were granted funding support in modernizing amenities and sound and lighting systems that directly benefitted musicians and fans.
"The idea that funds from performances in major spaces supports the independent spots, where it all starts for artists like me, is just logical," the star has stated.
Fender is among several artists to contribute his award prize money to worthy causes.
When the band received the award in the year 1996 for their release Different Class, vocalist Cocker stated that the group would donate their cash to the charity the charity.
In 2002, artist the artist split her bounty between multiple organizations, including the NSPCC and a charity for Sickle Cell.
"Additionally, I gave a thousand pounds to my local community centre, to their gymnastics class, because I did gymnastics when I was growing up and they needed new equipment," Ms Dynamite shared with outlets.
In recent years, the band gave their funds to the youth organization that supported their band, as well as other grassroots music organisations.
Additionally winners that year the group contributed their award to a multiple sclerosis charity after a acquaintance was identified with the disease.
"Receiving the award was sufficient," stated singer Small. "The prize was the extra but we didn't require the bonus, because we had the cake. So our winning impacted the lives of others."
Recently, the MVT announced it had saved a couple of grassroots venues in south-east England, by transferring them to public stewardship.
The Joiners in Southampton and The Croft in the city were acquired under the Own Our Venues initiative, which is supported by Arts Council England and enthusiasts who acquire "shares" in the properties.