The artist has handed over the entirety of his £25k Mercury Prize cash to the trust for venues, which works to protect the UK's grassroots live music spots.
The star was given the award on mid-October as his new release People Watching was named the top album of the past year.
He has chosen to hand the money over to the trust, in recognition of the vital role local spots had in his early career.
"I personally couldn't be pursuing this success if it wasn't for all the performances I played around the area, and beyond, when I was beginning," said the artist. "These spaces are renowned, but they are facing challenges."
Since the start of 2023, over 150 of these spaces have shut down – approximately one-sixth of the total UK scene.
In the last year, well-known musicians including Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its efforts to keep the scene afloat, by applying a small levy to their ticket prices, which supports local stages.
Sam Fender also joined in, collecting more than £100,000 on his live tour to support 38 grassroots venues across the UK.
These funds helped spaces that were dealing with possible closure due to difficulties caused by water damage, fires and family tragedies, as well as permit problems, conflicts and sound issues.
Additional spaces obtained financial assistance in modernizing facilities and sound and lighting systems that positively impacted musicians and concertgoers.
"The notion that funds from concerts in major spaces helps the independent spots, where it begins for performers like me, is just sensible," Sam Fender has said.
Fender is not the first artist to donate his honor prize money to charitable organizations.
In the band earned the prize in the year 1996 for their album their work, frontman Jarvis Cocker announced that the group would give their cash to the organization the charity.
During 2002, musician Ms Dynamite split her award between a few good causes, like the children's charity and a Sickle Cell charity.
"I also contributed a thousand pounds to the center, to their classes, because I trained in gymnastics when I was growing up and they needed new equipment," she shared with outlets.
Previously, they contributed their winnings to the local youth club that supported their act, in addition to other local music groups.
And 1994 winners M People donated their winnings to a charity for MS after a friend was found to have the disease.
"Winning was quite enough," remarked vocalist Small. "The prize was the cherry on top but we didn't require the extra, because we had the main prize. So our victory touched another person's life."
In the past week, the trust announced it had saved several grassroots venues in the South East, by bringing them into community ownership.
One venue in the city and the other in the city were bought under the Own Our Venues initiative, which is backed by the arts council and supporters who purchase "stakes" in the venues.
