The star has handed over the entirety of his £25k honor winnings to the Music Venues Trust, which operates to save the UK's grassroots live music spots.
Fender was presented with the cheque on 16 October as his third album his work was chosen as the top album of the previous year.
The musician has chosen to donate the funds to the Music Venues Trust, in appreciation of the vital role grassroots venues fulfilled in his early career.
"I wouldn't be doing this success if it wasn't for all the gigs I did around the area, and beyond, when I was beginning," remarked the artist. "These venues are legendary, but they are facing challenges."
Beginning in 2023, over 150 of these spaces have shut down – roughly one-sixth of the whole industry in the UK.
Over the past year, well-known musicians like the band Pulp, Coldplay, the singer Katy Perry and Sheeran have all supported the MVT in its efforts to keep the scene afloat, by including a minor surcharge to their admission fees, which benefits independent venues.
Sam Fender also participated, raising over £100k on his recent tour to help thirty-eight local spots across England, Scotland, and Wales.
These funds supported locations that were facing imminent closure due to difficulties stemming from floods, fire incidents and personal losses, as well as permit problems, legal disputes and noise complaints.
Other venues received financial assistance in improving infrastructure and gear that directly benefitted musicians and fans.
"The concept that money from concerts in large arenas backs the independent spots, where it all starts for performers like me, is just common sense," Fender has stated.
He is far from the only musician to donate his Mercury Prize funds to charitable organizations.
In they won the trophy in the year 1996 for their album their work, vocalist Jarvis Cocker declared that the act would contribute their winnings to the organization War Child.
During 2002, artist Ms Dynamite shared her prize between multiple good causes, including the NSPCC and a Sickle Cell organization.
"I also contributed a grand to Highgate Newtown, to their gymnastics class, because I practiced gymnastics when I was growing up and they needed better apparatus," the artist explained to outlets.
Previously, the band contributed their prize money to the youth organization that developed their act, as well as other grassroots music organisations.
Also 1994 winners M People gave their winnings to a charity for MS after a acquaintance was diagnosed the disease.
"Receiving the award was quite enough," said singer the singer. "The cash was the extra but we didn't require the cherry, because we had the cake. So our success touched another person's life."
Last week, the Music Venues Trust announced it had rescued several small stages in that region, by bringing them into local control.
The first in the city and The Croft in Bristol were acquired under the Own Our Venues program, which is supported by Arts Council England and supporters who purchase "stakes" in the buildings.
