The artist has handed over the full amount of his £25,000 award winnings to the Music Venues Trust, which operates to save the Britain's grassroots concert spaces.
The star was awarded the prize on October 16 as his latest record the album was chosen as the top album of the last 12 months.
He has decided to hand the money over to the Music Venues Trust, in recognition of the vital role grassroots venues had in his initial steps.
"As an artist wouldn't be doing my current career if it wasn't for all the gigs I did around the North East, and further afield, when I was just getting going," remarked Sam Fender. "These spaces are iconic, but they are struggling."
Since the start of 2023, at least 150 of these locations have shut down – about one-sixth of the entire UK sector.
Over the past year, major artists including the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its initiatives to keep the scene afloat, by applying a minor surcharge to their admission fees, which benefits independent venues.
Fender also participated, raising over £100k on his 2024 arena tour to assist 38 local spots across England, Scotland, and Wales.
The donation assisted venues that were facing potential shutdown due to difficulties stemming from water damage, fires and family tragedies, as well as regulatory hurdles, court cases and sound issues.
Additional spaces obtained funding support in upgrading amenities and gear that directly benefitted musicians and concertgoers.
"The concept that money from shows in large arenas helps the local stages, where it begins for artists like me, is just logical," Sam Fender has said.
Fender is not the first artist to give his Mercury Prize winnings to good deeds.
When they received the award in 1996 for their record Different Class, frontman Cocker announced that the band would contribute their cash to the charity War Child.
During 2002, rapper and singer she split her award among multiple organizations, including the NSPCC and a Sickle Cell charity.
"And I donated a grand to my local community centre, to their gymnastics program, because I practiced gymnastics when I was growing up and they needed better apparatus," she explained to the media.
Two years ago, Ezra Collective donated their winnings to the youth organization that nurtured their band, alongside other local music groups.
Additionally the 1994 recipients the group donated their award to a charity for MS after a acquaintance was diagnosed the disease.
"Receiving the award was sufficient," said vocalist the singer. "The cash was the bonus but we could do without the extra, because we had the honor. So our winning touched the lives of others."
Recently, the Music Venues Trust announced it had protected several small stages in south-east England, by placing them under public stewardship.
One venue in the city and the second in the city were purchased under the Own Our Venues program, which is supported by Arts Council England and music fans who acquire "shares" in the buildings.