The artist has handed over the complete sum of his £25k award winnings to the Music Venues Trust, which works to preserve the UK's small live music spots.
Fender was awarded the award on 16 October as his latest record his work was declared the top album of the last 12 months.
He has chosen to hand the money over to the MVT, in recognition of the vital role small stages fulfilled in his initial steps.
"As an artist wouldn't be doing what I am doing today if it wasn't for all the shows I played around the area, and further afield, when I was beginning," said Sam Fender. "These spaces are legendary, but they are struggling."
Since the start of 2023, at least 150 of these venues have permanently closed – roughly 16 percent of the entire UK sector.
Recently, major artists including Pulp, the group Coldplay, Katy Perry and Sheeran have all supported the Music Venues Trust in its initiatives to help venues survive, by including a small levy to their ticket prices, which benefits local stages.
Fender also took part, generating more than £100,000 on his live tour to support thirty-eight grassroots venues across Britain.
The donation assisted venues that were dealing with imminent closure due to issues caused by water damage, fires and bereavements, as well as regulatory hurdles, legal disputes and sound issues.
Other venues received monetary aid in upgrading facilities and technical equipment that directly benefitted performers and audiences.
"The notion that revenue from concerts in large arenas helps the independent spots, where it kicks off for musicians like me, is just logical," the star has said.
He is among several artists to give his Mercury Prize winnings to good deeds.
Back when Pulp won the award in the mid-90s for their release the album, vocalist Cocker announced that the group would donate their prize money to the non-profit the charity.
During 2002, musician the artist shared her prize across multiple organizations, including the NSPCC and a Sickle Cell charity.
"Additionally, I donated a £1,000 to the center, to their classes, because I trained in gymnastics when I was growing up and they required better apparatus," Ms Dynamite explained to a publication.
In recent years, the band donated their winnings to the community center that supported their band, alongside other grassroots music organisations.
And winners that year M People contributed their prize to a charity for MS after a acquaintance was found to have the illness.
"Winning was ample," remarked vocalist Small. "The prize was the extra but we didn't require the extra, because we had the cake. So our success impacted somebody else's life."
Recently, the Music Venues Trust shared it had saved a couple of small stages in the South East, by placing them under local control.
The first in that area and the second in the city were purchased under the community ownership program, which is supported by a national body and music fans who buy "stakes" in the venues.
