The star has given the full amount of his £25k Mercury Prize cash to the Music Venues Trust, which operates to save the UK's independent live music spots.
He was presented with the prize on October 16 as his new release his work was chosen as the best record of the last 12 months.
He has decided to donate the funds to the MVT, in acknowledgment of the vital role grassroots venues played in his early career.
"As an artist would not have achieved my current career if it weren't for all the gigs I played around the North East, and beyond, when I was just getting going," remarked Sam Fender. "These locations are legendary, but they are in difficulty."
Beginning in 2023, over 150 of these spaces have ceased operations – approximately 16% 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 aided the trust in its attempts to help venues survive, by including a minor surcharge to their ticket prices, which supports local stages.
Sam Fender also joined in, generating more than £100,000 on his live tour to assist thirty-eight grassroots venues across Britain.
The donation supported locations that were facing possible closure due to difficulties arising from flooding, blazes and family tragedies, as well as permit problems, court cases and sound issues.
Other venues received funding support in upgrading infrastructure and sound and lighting systems that positively impacted musicians and concertgoers.
"The notion that revenue from performances in big venues backs the local stages, where it all starts for artists like me, is just logical," the star has commented.
He is far from the only musician to give his honor prize money to charitable organizations.
When Pulp earned the award in 1996 for their record Different Class, vocalist the singer declared that the act would contribute their winnings to the non-profit War Child.
In 2002, musician Ms Dynamite shared her prize between a few good causes, including the children's charity and a Sickle Cell charity.
"Additionally, I donated a thousand pounds to Highgate Newtown, to their classes, because I practiced gymnastics when I was growing up and they lacked updated gear," the artist shared with the media.
In recent years, Ezra Collective donated their prize money to the community center that supported their band, in addition to other grassroots music organisations.
And the 1994 recipients the group gave their award to a multiple sclerosis charity after a acquaintance was found to have the condition.
"The victory was ample," remarked artist Small. "The money was the extra but we didn't require the cherry, because we had the cake. So our success affected the lives of others."
Recently, the trust announced it had protected several grassroots venues in south-east England, by transferring them to local control.
The Joiners in the city and the second in that location were bought under the public acquisition program, which is backed by Arts Council England and music fans who buy "ownership units" in the buildings.
