The star has given the full amount of his £25,000 Mercury Prize prize money to the MVT, which operates to save the UK's grassroots music venues.
Fender was presented with the prize on mid-October as his third album People Watching was named the outstanding release of the past year.
Fender has decided to donate the funds to the Music Venues Trust, in acknowledgment of the vital role local spots fulfilled in his initial steps.
"I personally couldn't be pursuing what I am doing today if it weren't for all the shows I performed around the region, and further afield, when I was beginning," stated Fender. "These locations are legendary, but they are struggling."
From early 2023 onward, more than 150 of these venues have shut down – approximately one-sixth of the total UK scene.
In the last year, major artists such as the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its efforts to help venues survive, by applying a minor surcharge to their ticket costs, which goes to help local stages.
Sam Fender also participated, collecting more than £100,000 on his recent tour to assist 38 grassroots venues across England, Scotland, and Wales.
The donation helped locations that were confronting imminent closure due to issues arising from floods, blazes and personal losses, as well as licensing issues, court cases and noise complaints.
Other venues were granted financial assistance in modernizing amenities and sound and lighting systems that directly benefitted artists and fans.
"The concept that revenue from performances in big venues backs the smaller venues, where it kicks off for artists like me, is just sensible," the star has commented.
He is among several artists to donate his honor prize money to charitable organizations.
When they received the trophy in the mid-90s for their album their work, vocalist Cocker declared that the band would give their prize money to the organization the charity.
That year, musician Ms Dynamite split her prize across a few organizations, like the NSPCC and a Sickle Cell organization.
"And I donated a thousand pounds to Highgate Newtown, to their classes, because I trained in gymnastics when I was a child and they needed better apparatus," she shared with outlets.
Two years ago, they contributed their winnings to the community center that developed their act, alongside other grassroots music organisations.
And 1994 winners they gave their winnings to a MS organization after a friend was found to have the disease.
"Receiving the award was ample," stated singer Small. "The prize was the bonus but we could do without the extra, because we had the cake. So our winning touched another person's life."
In the past week, the trust shared it had rescued two small stages in south-east England, by placing them under local control.
The first in that area and the second in Bristol were bought under the community ownership program, which is supported by a national body and music fans who purchase "shares" in the buildings.