The star has handed over the full amount of his twenty-five thousand pound award prize money to the Music Venues Trust, which operates to save the UK's grassroots live music spots.
Fender was given the award on mid-October as his third album his work was chosen as the top album of the previous year.
He has chosen to hand the money over to the MVT, in appreciation of the vital role local spots played in his early career.
"I personally couldn't be pursuing what I am doing today if it wasn't for all the performances I played around the region, and further afield, when I was starting out," stated Sam Fender. "These locations are iconic, but they are in difficulty."
From early 2023 onward, at least 150 of these locations have ceased operations – approximately 16 percent of the whole industry in the UK.
In the last year, major artists such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its initiatives to keep the scene afloat, by applying a small levy to their admission fees, which goes to help local stages.
Sam Fender also participated, raising over £100k on his recent tour to help thirty-eight small stages across the UK.
These funds helped locations that were confronting imminent closure due to challenges stemming from water damage, fires and bereavements, as well as licensing issues, conflicts and neighbor objections.
Other venues were granted financial assistance in upgrading infrastructure and sound and lighting systems that helped performers and fans.
"The notion that funds from concerts in big venues backs the local stages, where it kicks off for performers like me, is just logical," the star has commented.
Fender is far from the only musician to give his Mercury Prize funds to charitable organizations.
When they received the award in the mid-90s for their album Different Class, lead singer the singer declared that the group would donate their winnings to the organization War Child.
In 2002, musician she shared her award among multiple charities, such as the NSPCC and a Sickle Cell organization.
"And I gave a £1,000 to my local community centre, to their classes, because I practiced gymnastics when I was growing up and they needed new equipment," she explained to outlets.
Two years ago, the band contributed their winnings to the community center that supported their act, alongside other local music groups.
And winners that year they contributed their winnings to a multiple sclerosis charity after a friend was diagnosed the illness.
"Winning was sufficient," said artist the singer. "The prize was the bonus but we didn't need the cherry, because we had the honor. So our winning affected somebody else's life."
In the past week, the trust announced it had rescued a couple of grassroots venues in that region, by placing them under public stewardship.
One venue in Southampton and The Croft in that location were purchased under the Own Our Venues initiative, which is supported by a national body and music fans who acquire "shares" in the properties.
