The star has given the entirety of his £25,000 Mercury Prize cash to the Music Venues Trust, which works to protect the UK's small music venues.
Fender was awarded the award on October 16 as his third album the album was declared the best record of the past year.
The musician has opted to hand the money over to the Music Venues Trust, in recognition of the crucial part local spots had in his initial steps.
"As an artist would not have achieved this success if it weren't for all the gigs I played around the North East, and elsewhere, when I was starting out," said Sam Fender. "These spaces are renowned, but they are struggling."
Beginning in 2023, over 150 of these venues have permanently closed – about 16 percent of the entire UK sector.
In the last year, major artists such as the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its efforts to support the industry, by applying a minor surcharge to their admission fees, which benefits local stages.
Sam Fender also joined in, generating in excess of £100,000 on his recent tour to support numerous small stages across England, Scotland, and Wales.
The donation assisted locations that were facing potential shutdown due to issues caused by water damage, blazes and bereavements, as well as licensing issues, court cases and noise complaints.
Other venues were granted funding support in upgrading amenities and gear that helped artists and fans.
"The idea that money from shows in major spaces supports the local stages, where it all starts for performers like me, is just sensible," Fender has stated.
He is not the first artist to donate his honor winnings to worthy causes.
When Pulp won the trophy in the year 1996 for their release Different Class, lead singer Cocker declared that the band would give their cash to the organization War Child.
That year, musician Ms Dynamite divided her award between multiple good causes, including the children's charity and a charity for Sickle Cell.
"Additionally, I contributed a £1,000 to my local community centre, to their gymnastics class, because I practiced gymnastics when I was growing up and they required new equipment," the artist explained to the media.
Previously, the band contributed their funds to the local youth club that developed their group, in addition to other grassroots music organisations.
And 1994 winners the group donated their award to a MS organization after a friend was found to have the condition.
"Winning was sufficient," stated singer Heather Small. "The money was the bonus but we didn't require the extra, because we had the main prize. So our success impacted the lives of others."
Recently, the Music Venues Trust shared it had protected several grassroots venues in south-east England, by placing them under public stewardship.
One venue in Southampton and the second in Bristol were purchased under the public acquisition initiative, which is supported by a national body and supporters who buy "ownership units" in the venues.
