The artist has handed over the complete sum of his £25,000 award winnings to the Music Venues Trust, which functions to save the Britain's grassroots concert spaces.
Fender was given the prize on October 16 as his latest record his work was declared the best record of the last 12 months.
He has decided to hand the money over to the MVT, in recognition of the vital role local spots fulfilled in his initial steps.
"As an artist would not have achieved what I am doing today if it weren't for all the gigs I performed around the North East, and beyond, when I was just getting going," remarked the artist. "These venues are legendary, but they are in difficulty."
From early 2023 onward, more than 150 of these locations have permanently closed – approximately 16% of the whole industry in the UK.
Over the past year, top acts like the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all backed the trust in its attempts to support the industry, by adding a modest fee to their ticket prices, which goes to help independent venues.
He also took part, collecting in excess of £100,000 on his recent tour to support thirty-eight small stages across England, Scotland, and Wales.
These funds supported spaces that were facing potential shutdown due to challenges stemming from flooding, fires and personal losses, as well as permit problems, court cases and noise complaints.
Additional spaces were granted financial assistance in modernizing facilities and gear that positively impacted musicians and fans.
"The concept that funds from performances in major spaces supports the independent spots, where it kicks off for performers like me, is just sensible," Sam Fender has commented.
He is far from the only musician to give his Mercury Prize funds to charitable organizations.
Back when Pulp earned the trophy in 1996 for their album the album, vocalist Jarvis Cocker announced that the act would contribute their winnings to the organization War Child.
That year, musician she shared her prize among multiple good causes, including the NSPCC and a Sickle Cell charity.
"I also gave a £1,000 to the center, to their gymnastics class, because I did gymnastics when I was younger and they required updated gear," Ms Dynamite told outlets.
Previously, the band contributed their winnings to the community center that developed their band, as well as other independent music bodies.
Also winners that year M People donated their award to a multiple sclerosis charity after a acquaintance was identified with the disease.
"Receiving the award was sufficient," stated vocalist the singer. "The prize was the bonus but we didn't need the cherry, because we had the main prize. So our success touched the lives of others."
In the past week, the trust announced it had rescued several grassroots venues in the South East, by transferring them to public stewardship.
The first in that area and the second in the city were acquired under the public acquisition program, which is supported by Arts Council England and enthusiasts who acquire "ownership units" in the venues.