The star has given the entirety of his £25k award cash to the Music Venues Trust, which functions to save the UK's independent live music spots.
Fender was given the award on 16 October as his new release People Watching was named the outstanding release of the past year.
He has opted to donate the funds to the trust, in recognition of the essential function grassroots venues played in his early career.
"As an artist would not have achieved my current career if it weren't for all the gigs I performed around the area, and beyond, when I was just getting going," stated Sam Fender. "These spaces are renowned, but they are struggling."
From early 2023 onward, over 150 of these locations have ceased operations – approximately 16% of the total UK scene.
Over the past year, well-known musicians including Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the trust in its attempts to help venues survive, by adding a small levy to their ticket costs, which supports smaller concert halls.
Sam Fender also joined in, generating over £100k on his live tour to assist numerous small stages across England, Scotland, and Wales.
The money helped spaces that were facing possible closure due to difficulties stemming from water damage, blazes and family tragedies, as well as permit problems, conflicts and neighbor objections.
Additional spaces received financial assistance in improving amenities and sound and lighting systems that directly benefitted musicians and fans.
"The concept that revenue from concerts in major spaces backs the independent spots, where it kicks off for performers like me, is just common sense," Fender has said.
Fender is not the first artist to donate his Mercury Prize funds to worthy causes.
Back when Pulp received the prize in the mid-90s for their release Different Class, vocalist the singer stated that the group would contribute their winnings to the organization the charity.
During 2002, artist the artist split her award among a few good causes, like the NSPCC and a Sickle Cell charity.
"Additionally, I donated a grand to the center, to their classes, because I trained in gymnastics when I was growing up and they needed better apparatus," the artist shared with outlets.
In recent years, Ezra Collective contributed their winnings to the youth organization that developed their band, alongside other grassroots music organisations.
Additionally 1994 winners the group gave their prize to a MS organization after a close contact was diagnosed the condition.
"Receiving the award was quite enough," said artist Small. "The cash was the extra but we could do without the extra, because we had the main prize. So our success touched the lives of others."
Last week, the MVT revealed it had rescued several grassroots venues in that region, by placing them under community ownership.
The first in that area and the other in the city were purchased under the community ownership scheme, which is funded by Arts Council England and enthusiasts who acquire "shares" in the properties.
