The artist has given the entirety of his £25k Mercury Prize cash to the Music Venues Trust, which functions to save the UK's grassroots live music spots.
He was presented with the cheque on October 16 as his new release People Watching was declared the outstanding release of the past year.
He has opted to give the cash to the Music Venues Trust, in acknowledgment of the vital role small stages fulfilled in his beginning days.
"I personally would not have achieved what I am doing today if it hadn't been for all the performances I performed around the North East, and further afield, when I was beginning," said Fender. "These locations are iconic, but they are facing challenges."
Since the start of 2023, over 150 of these venues have ceased operations – about 16% of the entire UK sector.
In the last year, top acts such as Pulp, Coldplay, the singer Katy Perry and Sheeran have all supported the MVT in its initiatives to help venues survive, by applying a small levy to their ticket prices, which benefits local stages.
He also participated, raising more than £100,000 on his live tour to help numerous grassroots venues across England, Scotland, and Wales.
The donation supported locations that were confronting possible closure due to issues stemming from flooding, fire incidents and personal losses, as well as regulatory hurdles, conflicts and noise complaints.
Other venues received financial assistance in improving facilities and technical equipment that positively impacted artists and concertgoers.
"The concept that money from performances in major spaces helps the smaller venues, where it kicks off for performers like me, is just logical," Sam Fender has said.
Fender is far from the only musician to give his award funds to good deeds.
In Pulp earned the trophy in the mid-90s for their release Different Class, vocalist the singer announced that the group would contribute their prize money to the non-profit the charity.
That year, artist the artist divided her prize across several charities, like the children's charity and a Sickle Cell organization.
"I also donated a thousand pounds to Highgate Newtown, to their classes, because I practiced gymnastics when I was a child and they required updated gear," the artist explained to outlets.
Previously, the band gave their prize money to the local youth club that supported their act, in addition to other grassroots music organisations.
And winners that year M People gave their prize to a multiple sclerosis charity after a acquaintance was identified with the illness.
"Winning was ample," said singer Heather Small. "The money was the bonus but we didn't need the bonus, because we had the honor. So our success touched the lives of others."
Last week, the MVT revealed it had rescued several local spots in that region, by placing them under community ownership.
One venue in the city and The Croft in the city were acquired under the community ownership scheme, which is funded by Arts Council England and supporters who acquire "ownership units" in the venues.