The star has given the entirety of his £25,000 honor prize money to the Music Venues Trust, which functions to preserve the UK's small music venues.
The star was presented with the award on mid-October as his third album People Watching was declared the outstanding release of the last 12 months.
He has chosen to give the cash to the trust, in recognition of the vital role local spots played in his initial steps.
"As an artist would not have achieved this success if it weren't for all the shows I performed around the region, and beyond, when I was just getting going," said Sam Fender. "These venues are iconic, but they are facing challenges."
From early 2023 onward, over 150 of these spaces have permanently closed – approximately 16% of the whole industry in the UK.
Recently, major artists including Pulp, Coldplay, Katy Perry and Sheeran have all aided the trust in its efforts to keep the scene afloat, by adding a modest fee to their admission fees, which supports smaller concert halls.
He also joined in, generating over £100k on his live tour to support numerous grassroots venues across England, Scotland, and Wales.
The money supported spaces that were dealing with potential shutdown due to issues stemming from flooding, fires and family tragedies, as well as permit problems, conflicts and noise complaints.
Other venues received funding support in modernizing amenities and technical equipment that helped performers and concertgoers.
"The notion that money from performances in large arenas supports the smaller venues, where it begins for artists like me, is just sensible," the star has said.
He is among several artists to contribute his Mercury Prize prize money to charitable organizations.
When the band won the prize in the mid-90s for their record the album, lead singer the singer announced that the act would donate their winnings to the non-profit the charity.
During 2002, musician Ms Dynamite split her bounty between a few charities, like the NSPCC and a Sickle Cell charity.
"And I donated a thousand pounds to my local community centre, to their classes, because I trained in gymnastics when I was growing up and they lacked new equipment," Ms Dynamite told a publication.
Two years ago, they contributed their funds to the local youth club that supported their band, alongside other independent music bodies.
Additionally winners that year they gave their winnings to a charity for MS after a acquaintance was diagnosed the illness.
"Winning was ample," remarked singer Small. "The money was the cherry on top but we didn't need the extra, because we had the cake. So our winning affected the lives of others."
Last week, the Music Venues Trust announced it had saved two grassroots venues in south-east England, by bringing them into local control.
The Joiners in that area and The Croft in Bristol were bought under the community ownership program, which is funded by Arts Council England and enthusiasts who buy "shares" in the buildings.