The artist has donated the complete sum of his £25,000 Mercury Prize cash to the Music Venues Trust, which operates to protect the Britain's small live music spots.
He was presented with the cheque on October 16 as his third album People Watching was chosen as the best record of the last 12 months.
The musician has decided to hand the money over to the MVT, in appreciation of the crucial part small stages played in his beginning days.
"As an artist wouldn't be doing my current career if it wasn't for all the performances I performed around the North East, and elsewhere, when I was beginning," remarked Sam Fender. "These spaces are iconic, but they are struggling."
Beginning in 2023, more than 150 of these locations have permanently closed – about 16% of the entire UK sector.
In the last year, well-known musicians such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its efforts to keep the scene afloat, by including a modest fee to their ticket prices, which goes to help smaller concert halls.
He also joined in, collecting over £100k on his live tour to help numerous grassroots venues across Britain.
The donation supported locations that were dealing with imminent closure due to challenges stemming from floods, fires and family tragedies, as well as licensing issues, court cases and noise complaints.
Additional spaces obtained funding support in modernizing facilities and technical equipment that positively impacted performers and fans.
"The notion that revenue from shows in big venues backs the smaller venues, where it all starts for artists like me, is just sensible," Sam Fender has commented.
He is far from the only musician to contribute his award funds to good deeds.
In Pulp won the award in the year 1996 for their record Different Class, vocalist Jarvis Cocker stated that the act would contribute their winnings to the charity War Child.
In 2002, artist she divided her bounty across multiple good causes, including the NSPCC and a Sickle Cell organization.
"Additionally, I gave a thousand pounds to the center, to their classes, because I trained in gymnastics when I was growing up and they required new equipment," Ms Dynamite shared with a publication.
Two years ago, the band gave their winnings to the community center that nurtured their group, alongside other local music groups.
Additionally winners that year the group contributed their prize to a MS organization after a friend was found to have the illness.
"Receiving the award was sufficient," stated artist the singer. "The prize was the bonus but we didn't need the cherry, because we had the main prize. So our success affected the lives of others."
Recently, the trust revealed it had saved a couple of grassroots venues in south-east England, by bringing them into public stewardship.
One venue in that area and The Croft in that location were acquired under the public acquisition initiative, which is supported by the arts council and enthusiasts who buy "stakes" in the buildings.