The star has given the entirety of his £25,000 honor cash to the Music Venues Trust, which functions to protect the UK's independent music venues.
Fender was awarded the award on mid-October as his new release People Watching was named the top album of the past year.
He has decided to donate the funds to the trust, in recognition of the crucial part grassroots venues had in his beginning days.
"As an artist would not have achieved my current career if it weren't for all the shows I played around the area, and elsewhere, when I was beginning," said Sam Fender. "These venues are iconic, but they are facing challenges."
Since the start of 2023, at least 150 of these venues have ceased operations – approximately 16% of the whole industry in the UK.
Over the past year, well-known musicians like Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all backed the trust in its efforts to help venues survive, by adding a modest fee to their admission fees, which benefits independent venues.
Sam Fender also joined in, generating more than £100,000 on his recent tour to help numerous local spots across Britain.
These funds helped spaces that were facing potential shutdown due to challenges arising from flooding, fire incidents and personal losses, as well as permit problems, court cases and sound issues.
Additional spaces received monetary aid in upgrading facilities and gear that positively impacted musicians and audiences.
"The concept that money from shows in major spaces supports the local stages, where it begins for musicians like me, is just logical," the star has stated.
He is among several artists to donate his Mercury Prize winnings to charitable organizations.
In the band received the trophy in the year 1996 for their release their work, vocalist Jarvis Cocker declared that the act would donate their winnings to the organization the charity.
During 2002, musician she split her award among several organizations, including the NSPCC and a charity for Sickle Cell.
"Additionally, I gave a £1,000 to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was younger and they lacked new equipment," Ms Dynamite told a publication.
In recent years, the band donated their winnings to the community center that developed their act, as well as other grassroots music organisations.
And winners that year M People donated their award to a MS organization after a acquaintance was diagnosed the disease.
"Receiving the award was quite enough," said artist the singer. "The money was the extra but we didn't need the cherry, because we had the main prize. So our success touched another person's life."
Recently, the trust revealed it had rescued two local spots in that region, by bringing them into public stewardship.
The Joiners in Southampton and the second in Bristol were bought under the Own Our Venues scheme, which is funded by the arts council and enthusiasts who acquire "shares" in the venues.
