The star has given the complete sum of his £25k Mercury Prize cash to the Music Venues Trust, which functions to save the United Kingdom's small live music spots.
The star was awarded the award on 16 October as his third album the album was chosen as the top album of the previous year.
The musician has opted to hand the money over to the MVT, in appreciation of the crucial part local spots played in his early career.
"I personally couldn't be pursuing my current career if it hadn't been for all the shows I did around the area, and further afield, when I was beginning," stated Sam Fender. "These locations are legendary, but they are struggling."
Since the start of 2023, at least 150 of these venues have shut down – approximately one-sixth of the whole industry in the UK.
Recently, well-known musicians including the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the MVT in its efforts to keep the scene afloat, by adding a modest fee to their ticket prices, which benefits independent venues.
Sam Fender also participated, raising in excess of £100,000 on his 2024 arena tour to assist 38 local spots across the UK.
The donation helped locations that were facing potential shutdown due to challenges stemming from flooding, fire incidents and personal losses, as well as licensing issues, court cases and noise complaints.
Additional spaces obtained funding support in modernizing amenities and technical equipment that positively impacted musicians and fans.
"The concept that money from shows in big venues helps the local stages, where it begins for artists like me, is just common sense," the star has said.
The musician is far from the only musician to donate his award winnings to good deeds.
In Pulp received the award in 1996 for their release their work, lead singer Cocker declared that the act would contribute their cash to the charity War Child.
During 2002, rapper and singer Ms Dynamite divided her prize among multiple good causes, including the NSPCC and a Sickle Cell charity.
"Additionally, I gave a thousand pounds to my local community centre, to their classes, because I practiced gymnastics when I was younger and they required updated gear," Ms Dynamite shared with a publication.
In recent years, the band contributed their prize money to the community center that nurtured their band, in addition to other local music groups.
Also 1994 winners they donated their winnings to a MS organization after a friend was identified with the illness.
"Receiving the award was ample," said artist the singer. "The money was the bonus but we didn't require the cherry, because we had the cake. So our victory affected the lives of others."
In the past week, the Music Venues Trust shared it had rescued several grassroots venues in the South East, by transferring them to community ownership.
The Joiners in that area and the other in that location were bought under the Own Our Venues scheme, which is funded by the arts council and enthusiasts who acquire "ownership units" in the properties.