The artist has donated the full amount of his £25k award prize money to the Music Venues Trust, which functions to save the Britain's independent music venues.
Fender was given the award on 16 October as his third album People Watching was declared the best record of the past year.
The musician has opted to give the cash to the Music Venues Trust, in recognition of the vital role grassroots venues 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 just getting going," remarked Sam Fender. "These venues are renowned, but they are struggling."
Beginning in 2023, more than 150 of these locations have shut down – about 16 percent of the whole industry in the UK.
Recently, well-known musicians such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its attempts to keep the scene afloat, by applying a modest fee to their ticket prices, which supports independent venues.
Sam Fender also took part, generating more than £100,000 on his recent tour to help numerous grassroots venues across England, Scotland, and Wales.
The money supported venues that were confronting potential shutdown due to difficulties caused by water damage, fire incidents and personal losses, as well as permit problems, conflicts and noise complaints.
Some locations received financial assistance in modernizing infrastructure and technical equipment that helped artists and concertgoers.
"The notion that funds from shows in major spaces helps the independent spots, where it all starts for musicians like me, is just common sense," Fender has commented.
He is not the first artist to donate his Mercury Prize funds to charitable organizations.
In the band earned the prize in the mid-90s for their record the album, vocalist Jarvis Cocker declared that the group would contribute their cash to the charity War Child.
During 2002, artist the artist split her prize between a few good causes, such as the children's charity and a Sickle Cell charity.
"And I donated a £1,000 to my local community centre, to their gymnastics program, because I trained in gymnastics when I was younger and they lacked new equipment," Ms Dynamite told the media.
Two years ago, they donated their winnings to the local youth club that nurtured their act, as well as other local music groups.
Additionally winners that year the group gave their winnings to a charity for MS after a friend was identified with the disease.
"Receiving the award was sufficient," said vocalist Small. "The cash was the bonus but we didn't require the bonus, because we had the honor. So our success affected another person's life."
Last week, the Music Venues Trust announced it had rescued a couple of local spots in south-east England, by transferring them to public stewardship.
The first in Southampton and the second in that location were acquired under the Own Our Venues initiative, which is funded by the arts council and enthusiasts who buy "ownership units" in the buildings.
