The artist has donated the complete sum of his £25,000 Mercury Prize cash to the Music Venues Trust, which operates to preserve the Britain's grassroots music venues.
Fender was given the prize on 16 October as his third album his work was chosen as the outstanding release of the past year.
Fender has opted to donate the funds to the MVT, in appreciation of the crucial part small stages had in his early career.
"I personally couldn't be pursuing my current career if it weren't for all the gigs I played around the area, and elsewhere, when I was starting out," remarked Sam Fender. "These spaces are renowned, but they are in difficulty."
Beginning in 2023, over 150 of these spaces have shut down – about 16% of the whole industry in the UK.
In the last year, top acts such as the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its initiatives to keep the scene afloat, by including a small levy to their ticket costs, which goes to help local stages.
Fender also took part, collecting in excess of £100,000 on his 2024 arena tour to assist 38 small stages across Britain.
These funds assisted spaces that were dealing with potential shutdown due to difficulties caused by water damage, blazes and bereavements, as well as permit problems, court cases and sound issues.
Additional spaces received financial assistance in upgrading infrastructure and gear that helped artists and concertgoers.
"The notion that money from concerts in large arenas backs the smaller venues, where it all starts for artists like me, is just logical," Fender has stated.
Fender is not the first artist to contribute his Mercury Prize prize money to good deeds.
When Pulp earned the award in the year 1996 for their release their work, lead singer Cocker stated that the act would donate their prize money to the charity War Child.
During 2002, musician Ms Dynamite split her award across multiple good causes, like the NSPCC and a charity for Sickle Cell.
"Additionally, I donated a thousand pounds to the center, to their gymnastics program, because I practiced gymnastics when I was younger and they required updated gear," the artist told the media.
Two years ago, Ezra Collective donated their prize money to the youth organization that nurtured their act, alongside other local music groups.
Additionally winners that year the group contributed their award to a charity for MS after a friend was identified with the disease.
"The victory was quite enough," stated singer the singer. "The cash was the extra but we didn't need the extra, because we had the cake. So our winning touched the lives of others."
In the past week, the Music Venues Trust announced it had protected several local spots in that region, by transferring them to community ownership.
The first in Southampton and the other in the city were acquired under the Own Our Venues initiative, which is supported by a national body and supporters who acquire "shares" in the properties.