The star has handed over the full amount of his £25k Mercury Prize cash to the Music Venues Trust, which functions to protect the UK's small music venues.
He was presented with the cheque on 16 October as his third album People Watching was declared the outstanding release of the past year.
Fender has chosen to hand the money over to the trust, in appreciation of the vital role small stages had in his initial steps.
"I wouldn't be doing what I am doing today if it hadn't been for all the performances I played around the North East, and elsewhere, when I was beginning," remarked Fender. "These venues are legendary, but they are facing challenges."
From early 2023 onward, more than 150 of these locations have shut down – about one-sixth of the whole industry in the UK.
In the last year, major artists such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its attempts to help venues survive, by adding a modest fee to their ticket costs, which benefits independent venues.
Sam Fender also joined in, generating in excess of £100,000 on his live tour to support numerous local spots across England, Scotland, and Wales.
The money helped spaces that were facing imminent closure due to difficulties stemming from water damage, fire incidents and personal losses, as well as licensing issues, conflicts and sound issues.
Other venues were granted financial assistance in upgrading infrastructure and sound and lighting systems that directly benefitted artists and fans.
"The concept that revenue from concerts in major spaces backs the smaller venues, where it all starts for performers like me, is just sensible," Sam Fender has commented.
He is far from the only musician to give his honor winnings to charitable organizations.
When Pulp earned the prize in the mid-90s for their album Different Class, lead singer the singer declared that the group would contribute their winnings to the organization War Child.
During 2002, musician Ms Dynamite split her bounty between a few charities, including the children's charity and a charity for Sickle Cell.
"I also contributed a £1,000 to the center, to their gymnastics class, because I trained in gymnastics when I was growing up and they lacked better apparatus," the artist explained to the media.
In recent years, Ezra Collective gave their winnings to the local youth club that developed their group, as well as other grassroots music organisations.
And 1994 winners M People contributed their prize to a charity for MS after a close contact was identified with the condition.
"The victory was ample," stated singer the singer. "The prize was the cherry on top but we didn't require the bonus, because we had the honor. So our winning impacted the lives of others."
In the past week, the Music Venues Trust revealed it had saved several grassroots venues in south-east England, by bringing them into public stewardship.
One venue in the city and The Croft in Bristol were purchased under the community ownership scheme, which is funded by Arts Council England and supporters who buy "ownership units" in the buildings.
