The star has handed over the full amount of his £25,000 Mercury Prize cash to the Music Venues Trust, which works to protect the UK's independent live music spots.
He was presented with the prize on mid-October as his latest record the album was chosen as the best record of the last 12 months.
He has opted to hand the money over to the Music Venues Trust, in recognition of the vital role grassroots venues fulfilled in his initial steps.
"I personally wouldn't be doing my current career if it wasn't for all the shows I performed around the North East, and beyond, when I was beginning," remarked Fender. "These spaces are legendary, but they are in difficulty."
Beginning in 2023, over 150 of these spaces have permanently closed – approximately 16% of the entire UK sector.
Recently, major artists like Pulp, Coldplay, Katy Perry and Sheeran have all backed the MVT in its attempts to keep the scene afloat, by including a small levy to their ticket costs, which goes to help smaller concert halls.
Fender also participated, generating over £100k on his recent tour to support thirty-eight grassroots venues across the UK.
These funds helped spaces that were facing possible closure due to issues arising from water damage, blazes and bereavements, as well as permit problems, legal disputes and noise complaints.
Other venues obtained financial assistance in upgrading facilities and technical equipment that directly benefitted musicians and fans.
"The concept that funds from performances in big venues backs the independent spots, where it kicks off for performers like me, is just common sense," Sam Fender has commented.
The musician is far from the only musician to give his award funds to worthy causes.
When Pulp won the trophy in the mid-90s for their release the album, lead singer Cocker announced that the group would contribute their prize money to the organization War Child.
During 2002, rapper and singer she split her prize across multiple good causes, including the children's charity and a Sickle Cell charity.
"I also contributed a thousand pounds to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was growing up and they needed better apparatus," the artist told a publication.
In recent years, the band donated their funds to the local youth club that supported their group, alongside other grassroots music organisations.
And winners that year the group gave their winnings to a MS organization after a close contact was diagnosed the condition.
"The victory was quite enough," remarked artist Heather Small. "The cash was the cherry on top but we didn't require the cherry, because we had the main prize. So our success touched somebody else's life."
Recently, the Music Venues Trust announced it had saved several small stages in that region, by placing them under public stewardship.
The first in the city and the other in the city were bought under the Own Our Venues initiative, which is funded by Arts Council England and enthusiasts who purchase "stakes" in the buildings.