The star has donated the entirety of his £25k Mercury Prize cash to the Music Venues Trust, which functions to protect the UK's small music venues.
He was given the award on 16 October as his latest record People Watching was chosen as the best record of the previous year.
The musician has decided to donate the funds to the MVT, in acknowledgment of the essential function local spots had in his beginning days.
"I personally couldn't be pursuing this success if it wasn't for all the shows I played around the region, and further afield, when I was just getting going," remarked Sam Fender. "These venues are renowned, but they are in difficulty."
From early 2023 onward, more than 150 of these venues have ceased operations – approximately 16 percent of the entire UK sector.
Recently, major artists like the band Pulp, Coldplay, Katy Perry and Sheeran have all supported the Music Venues Trust in its efforts to support the industry, by adding a minor surcharge to their ticket prices, which goes to help independent venues.
He also joined in, raising more than £100,000 on his 2024 arena tour to support 38 local spots across the UK.
The donation assisted spaces that were facing potential shutdown due to difficulties arising from flooding, fires and bereavements, as well as licensing issues, court cases and noise complaints.
Additional spaces were granted monetary aid in improving infrastructure and sound and lighting systems that directly benefitted musicians and audiences.
"The concept that funds from shows in large arenas backs the local stages, where it kicks off for artists like me, is just sensible," Sam Fender has said.
He is not the first artist to give his award winnings to worthy causes.
When they won the award in the year 1996 for their record Different Class, vocalist the singer announced that the group would give their prize money to the charity War Child.
During 2002, musician the artist shared her bounty among multiple good causes, such as the NSPCC and a Sickle Cell organization.
"I also gave a thousand pounds to Highgate Newtown, to their classes, because I practiced gymnastics when I was a child and they required updated gear," she told the media.
Previously, Ezra Collective contributed their winnings to the community center that developed their act, as well as other grassroots music organisations.
And winners that year M People gave their prize to a MS organization after a friend was identified with the disease.
"The victory was sufficient," said artist Small. "The cash was the cherry on top but we didn't require the extra, because we had the honor. So our victory impacted the lives of others."
Recently, the Music Venues Trust announced it had rescued several small stages in south-east England, by bringing them into community ownership.
One venue in Southampton and the second in that location were purchased under the community ownership scheme, which is supported by a national body and enthusiasts who buy "shares" in the properties.