The artist has donated the full amount of his £25,000 Mercury Prize cash to the MVT, which functions to save the UK's small live music spots.
The star was presented with the prize on mid-October as his third album the album was declared the best record of the last 12 months.
Fender has opted to hand the money over to the Music Venues Trust, in appreciation of the vital role small stages played in his early career.
"As an artist couldn't be pursuing my current career if it wasn't for all the shows I performed around the region, and elsewhere, when I was just getting going," remarked Fender. "These locations are renowned, but they are struggling."
Since the start of 2023, at least 150 of these venues have permanently closed – roughly 16% of the whole industry in the UK.
In the last year, well-known musicians like Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its attempts to support the industry, by including a small levy to their ticket costs, which supports smaller concert halls.
Sam Fender also participated, generating in excess of £100,000 on his recent tour to help 38 small stages across England, Scotland, and Wales.
These funds assisted venues that were facing possible closure due to issues stemming from floods, fire incidents and personal losses, as well as permit problems, legal disputes and noise complaints.
Other venues received funding support in modernizing facilities and gear that positively impacted musicians and concertgoers.
"The idea that revenue from performances in large arenas helps the smaller venues, where it begins for musicians like me, is just sensible," Fender has stated.
The musician is far from the only musician to contribute his honor funds to worthy causes.
When Pulp won the trophy in the year 1996 for their release Different Class, vocalist Jarvis Cocker declared that the group would give their cash to the charity War Child.
In 2002, rapper and singer Ms Dynamite divided her award across a few organizations, including the NSPCC and a charity for Sickle Cell.
"Additionally, I donated a grand to Highgate Newtown, to their classes, because I practiced gymnastics when I was a child and they lacked new equipment," the artist told outlets.
Previously, the band contributed their prize money to the community center that developed their band, alongside other grassroots music organisations.
Also the 1994 recipients they donated their prize to a multiple sclerosis charity after a close contact was found to have the disease.
"Winning was sufficient," stated artist Heather Small. "The cash was the extra but we could do without the cherry, because we had the cake. So our winning touched somebody else's life."
Recently, the MVT revealed it had protected several local spots in that region, by placing them under public stewardship.
The Joiners in that area and the second in the city were bought under the community ownership program, which is supported by Arts Council England and enthusiasts who acquire "stakes" in the venues.