The star has given the full amount of his £25k Mercury Prize cash to the MVT, which works to protect the Britain's small concert spaces.
The star was awarded the cheque on 16 October as his third album his work was named the outstanding release of the past year.
The musician has decided to hand the money over to the MVT, in appreciation of the vital role grassroots venues fulfilled in his beginning days.
"I personally would not have achieved what I am doing today if it wasn't for all the gigs I played around the area, and beyond, when I was just getting going," said Fender. "These spaces are renowned, but they are struggling."
Since the start of 2023, over 150 of these venues have permanently closed – roughly 16 percent of the total UK scene.
Recently, major artists such as Pulp, Coldplay, Katy Perry and Sheeran have all backed the Music Venues Trust in its initiatives to support the industry, by including a modest fee to their admission fees, which benefits local stages.
Sam Fender also joined in, generating more than £100,000 on his live tour to help numerous local spots across Britain.
The donation supported venues that were confronting imminent closure due to issues stemming from water damage, fire incidents and family tragedies, as well as regulatory hurdles, conflicts and neighbor objections.
Some locations were granted monetary aid in modernizing facilities and gear that directly benefitted performers and fans.
"The idea that revenue from shows in major spaces supports the smaller venues, where it all starts for musicians like me, is just common sense," Fender has commented.
Fender is far from the only musician to contribute his honor prize money to worthy causes.
In the band received the prize in the year 1996 for their album the album, lead singer the singer stated that the group would donate their prize money to the non-profit War Child.
That year, musician Ms Dynamite split her bounty among multiple organizations, like the NSPCC and a Sickle Cell organization.
"Additionally, I gave a grand to my local community centre, to their gymnastics program, because I trained in gymnastics when I was a child and they lacked better apparatus," the artist told outlets.
Two years ago, Ezra Collective gave their prize money to the youth organization that developed their act, in addition to other local music groups.
Additionally winners that year M People gave their winnings to a MS organization after a friend was identified with the illness.
"Receiving the award was sufficient," said singer Heather Small. "The money was the cherry on top but we could do without the extra, because we had the honor. So our victory affected another person's life."
In the past week, the trust revealed it had rescued a couple of grassroots venues in the South East, by placing them under public stewardship.
The first in Southampton and The Croft in Bristol were acquired under the public acquisition scheme, which is supported by a national body and supporters who buy "shares" in the properties.