The artist has donated the full amount of his twenty-five thousand pound honor prize money to the Music Venues Trust, which functions to protect the UK's grassroots music venues.
Fender was presented with the cheque on 16 October as his latest record his work was named the best record of the last 12 months.
He has decided to hand the money over to the trust, in recognition of the vital role grassroots venues had in his beginning days.
"I personally wouldn't be doing my current career if it wasn't for all the shows I performed around the region, and elsewhere, when I was beginning," remarked Sam Fender. "These locations are renowned, but they are facing challenges."
From early 2023 onward, more than 150 of these venues have ceased operations – roughly 16 percent of the total UK scene.
In the last year, major artists including Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its initiatives to keep the scene afloat, by including a minor surcharge to their ticket prices, which supports local stages.
He also participated, generating over £100k on his 2024 arena tour to assist 38 local spots across England, Scotland, and Wales.
The donation supported spaces that were dealing with potential shutdown due to difficulties arising from floods, blazes and bereavements, as well as licensing issues, court cases and sound issues.
Some locations received financial assistance in improving infrastructure and sound and lighting systems that positively impacted artists and audiences.
"The notion that funds from concerts in major spaces helps the local stages, where it kicks off for performers like me, is just sensible," Fender has said.
Fender is far from the only musician to contribute his Mercury Prize funds to worthy causes.
In Pulp won the award in 1996 for their album the album, vocalist the singer announced that the band would donate their prize money to the organization War Child.
That year, artist Ms Dynamite divided her award across several charities, such as the children's charity and a charity for Sickle Cell.
"Additionally, I gave a grand to Highgate Newtown, to their gymnastics class, because I practiced gymnastics when I was a child and they needed new equipment," Ms Dynamite explained to the media.
Two years ago, the band donated their winnings to the youth organization that developed their band, as well as other independent music bodies.
And 1994 winners they gave their winnings to a charity for MS after a acquaintance was diagnosed the condition.
"Receiving the award was quite enough," stated artist the singer. "The cash was the cherry on top but we didn't require the cherry, because we had the cake. So our victory impacted another person's life."
Recently, the trust revealed it had saved two local spots in the South East, by placing them under local control.
The first in Southampton and the other in Bristol were acquired under the Own Our Venues program, which is supported by the arts council and supporters who acquire "stakes" in the buildings.