The artist has given the entirety of his £25,000 Mercury Prize cash to the MVT, which works to protect the Britain's small live music spots.
The star was awarded the award on mid-October as his third album his work was chosen as the top album of the past year.
Fender has decided to give the cash to the trust, in appreciation of the essential function local spots had in his beginning days.
"As an artist couldn't be pursuing this success if it wasn't for all the performances I did around the North East, and elsewhere, when I was just getting going," said Sam Fender. "These spaces are iconic, but they are in difficulty."
Beginning in 2023, more than 150 of these venues have permanently closed – about 16 percent of the whole industry in the UK.
Over the past year, well-known musicians like Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all aided the MVT in its efforts to help venues survive, by applying a small levy to their ticket costs, which goes to help independent venues.
Sam Fender also participated, collecting more than £100,000 on his live tour to assist numerous local spots across England, Scotland, and Wales.
The donation assisted spaces that were facing possible closure due to difficulties caused by water damage, fire incidents and bereavements, as well as licensing issues, legal disputes and sound issues.
Some locations received monetary aid in improving amenities and technical equipment that positively impacted performers and concertgoers.
"The notion that funds from shows in big venues supports the smaller venues, where it begins for artists like me, is just logical," Fender has said.
The musician is not the first artist to contribute his award prize money to worthy causes.
When the band earned the trophy in 1996 for their release the album, lead singer Jarvis Cocker stated that the group would donate their winnings to the non-profit War Child.
During 2002, artist she divided her award among multiple organizations, like the children's charity and a charity for Sickle Cell.
"I also gave a grand to my local community centre, to their gymnastics class, because I did gymnastics when I was younger and they needed better apparatus," the artist explained to a publication.
Two years ago, the band gave their funds to the youth organization that nurtured their group, as well as other grassroots music organisations.
Also winners that year they gave their award to a charity for MS after a close contact was identified with the condition.
"Winning was ample," said vocalist Heather Small. "The cash was the extra but we could do without the cherry, because we had the main prize. So our victory impacted the lives of others."
Last week, the MVT revealed it had protected several grassroots venues in the South East, by transferring them to community ownership.
The first in that area and The Croft in that location were purchased under the community ownership scheme, which is backed by a national body and enthusiasts who acquire "stakes" in the venues.