The star has handed over the full amount of his £25,000 honor winnings to the Music Venues Trust, which operates to protect the UK's independent concert spaces.
Fender was presented with the prize on October 16 as his new release the album was chosen as the best record of the last 12 months.
He has decided to give the cash to the trust, in recognition of the essential function grassroots venues had in his early career.
"I personally would not have achieved my current career if it hadn't been for all the gigs I performed around the North East, and further afield, when I was starting out," stated Sam Fender. "These venues are renowned, but they are in difficulty."
From early 2023 onward, at least 150 of these spaces have shut down – roughly 16% of the total UK scene.
In the last year, well-known musicians including Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all supported the trust in its efforts to keep the scene afloat, by including a modest fee to their ticket prices, which benefits local stages.
Fender also participated, generating in excess of £100,000 on his 2024 arena tour to support numerous local spots across Britain.
The money helped venues that were facing imminent closure due to challenges arising from water damage, fires and bereavements, as well as regulatory hurdles, conflicts and sound issues.
Other venues were granted financial assistance in improving infrastructure and gear that helped musicians and fans.
"The notion that revenue from concerts in big venues backs the local stages, where it kicks off for musicians like me, is just logical," the star has stated.
He is far from the only musician to contribute his Mercury Prize prize money to good deeds.
In the band won the award in 1996 for their record Different Class, frontman the singer declared that the act would contribute their prize money to the organization War Child.
In 2002, rapper and singer the artist divided her prize between a few organizations, such as the NSPCC and a Sickle Cell organization.
"I also donated a £1,000 to the center, to their gymnastics class, because I trained in gymnastics when I was younger and they required new equipment," Ms Dynamite told the media.
Previously, the band gave their prize money to the community center that nurtured their act, in addition to other grassroots music organisations.
And 1994 winners the group donated their prize to a charity for MS after a friend was identified with the disease.
"The victory was quite enough," stated vocalist Small. "The money was the bonus but we could do without the cherry, because we had the cake. So our victory touched somebody else's life."
In the past week, the MVT announced it had saved a couple of small stages in the South East, by placing them under community ownership.
The Joiners in the city and The Croft in that location were purchased under the Own Our Venues scheme, which is backed by Arts Council England and enthusiasts who purchase "shares" in the venues.
