The artist has donated the full amount of his £25,000 Mercury Prize cash to the Music Venues Trust, which operates to protect the United Kingdom's grassroots live music spots.
The star was awarded the award on 16 October as his third album People Watching was named the outstanding release of the previous year.
Fender has decided to hand the money over to the Music Venues Trust, in appreciation of the vital role local spots played in his initial steps.
"I would not have achieved this success if it wasn't for all the performances I played around the North East, and further afield, when I was starting out," remarked Sam Fender. "These locations are renowned, but they are facing challenges."
Since the start of 2023, at least 150 of these venues have permanently closed – approximately 16 percent of the total UK scene.
Recently, major artists like Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its efforts to help venues survive, by including a small levy to their ticket prices, which benefits local stages.
Fender also joined in, raising more than £100,000 on his 2024 arena tour to help 38 grassroots venues across the UK.
The money assisted spaces that were facing potential shutdown due to issues caused by flooding, fire incidents and family tragedies, as well as permit problems, court cases and noise complaints.
Additional spaces were granted financial assistance in improving infrastructure and technical equipment that directly benefitted musicians and audiences.
"The notion that money from performances in major spaces backs the independent spots, where it all starts for musicians like me, is just common sense," Sam Fender has commented.
The musician is not the first artist to give his award funds to good deeds.
When they earned the trophy in the mid-90s for their release the album, frontman Jarvis Cocker declared that the act would contribute their winnings to the organization War Child.
During 2002, artist Ms Dynamite split her prize between several organizations, such as the children's charity and a Sickle Cell organization.
"And I gave a grand to Highgate Newtown, to their classes, because I practiced gymnastics when I was growing up and they required better apparatus," the artist explained to the media.
Two years ago, the band gave their funds to the community center that developed their band, alongside other local music groups.
Also the 1994 recipients they donated their prize to a charity for MS after a close contact was found to have the illness.
"Winning was sufficient," stated vocalist the singer. "The money was the cherry on top but we didn't require the extra, because we had the honor. So our winning affected the lives of others."
Recently, the MVT shared it had protected a couple of small stages in the South East, by bringing them into community ownership.
The first in Southampton and The Croft in that location were bought under the community ownership scheme, which is funded by a national body and enthusiasts who buy "shares" in the venues.
