The artist has donated the full amount of his £25,000 Mercury Prize cash to the MVT, which works to protect the Britain's small concert spaces.
He was presented with the award on 16 October as his new release People Watching was declared the best record of the previous year.
Fender has chosen to hand the money over to the trust, in appreciation of the vital role small stages played in his initial steps.
"I wouldn't be doing this success if it weren't for all the performances I played around the North East, and further afield, when I was beginning," remarked Sam Fender. "These locations are legendary, but they are facing challenges."
Since the start of 2023, more than 150 of these locations have shut down – about one-sixth of the total UK scene.
Recently, well-known musicians like the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its initiatives to support the industry, by adding a modest fee to their admission fees, which benefits independent venues.
Sam Fender also participated, collecting over £100k on his live tour to help 38 grassroots venues across England, Scotland, and Wales.
The money helped locations that were confronting potential shutdown due to difficulties arising from water damage, fires and personal losses, as well as regulatory hurdles, court cases and neighbor objections.
Some locations obtained financial assistance in modernizing infrastructure and sound and lighting systems that positively impacted performers and concertgoers.
"The concept that revenue from concerts in major spaces backs the smaller venues, where it all starts for musicians like me, is just sensible," Sam Fender has stated.
Fender is not the first artist to give his Mercury Prize prize money to charitable organizations.
In Pulp won the trophy in the year 1996 for their album Different Class, vocalist Jarvis Cocker stated that the group would donate their cash to the organization War Child.
In 2002, artist the artist divided her award among several organizations, including the NSPCC and a charity for Sickle Cell.
"I also donated a thousand pounds to Highgate Newtown, to their gymnastics program, because I did gymnastics when I was growing up and they lacked updated gear," the artist told outlets.
In recent years, they donated their prize money to the youth organization that developed their group, as well as other grassroots music organisations.
Additionally winners that year the group gave their winnings to a charity for MS after a friend was found to have the illness.
"Receiving the award was ample," stated vocalist Heather Small. "The cash was the extra but we could do without the cherry, because we had the honor. So our winning touched the lives of others."
In the past week, the Music Venues Trust shared it had protected several grassroots venues in that region, by bringing them into local control.
One venue in Southampton and the other in that location were acquired under the Own Our Venues program, which is backed by a national body and enthusiasts who purchase "ownership units" in the buildings.