The artist has handed over the entirety of his twenty-five thousand pound honor prize money to the Music Venues Trust, which functions to save the Britain's small music venues.
Fender was given the prize on 16 October as his new release the album was declared the top album of the previous year.
He has decided to hand the money over to the MVT, in recognition of the vital role grassroots venues played in his initial steps.
"I wouldn't be doing this success if it hadn't been for all the gigs I performed around the North East, and elsewhere, when I was just getting going," stated Fender. "These venues are legendary, but they are in difficulty."
Beginning in 2023, at least 150 of these spaces have shut down – roughly 16% of the whole industry in the UK.
In the last year, well-known musicians including Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its efforts to help venues survive, by including a modest fee to their ticket prices, which benefits smaller concert halls.
Sam Fender also joined in, generating in excess of £100,000 on his live tour to help 38 local spots across England, Scotland, and Wales.
These funds supported locations that were dealing with possible closure due to challenges stemming from flooding, fire incidents and personal losses, as well as permit problems, court cases and sound issues.
Some locations obtained financial assistance in modernizing infrastructure and sound and lighting systems that directly benefitted artists and audiences.
"The idea that revenue from shows in major spaces backs the local stages, where it kicks off for performers like me, is just sensible," the star has commented.
The musician is among several artists to donate his Mercury Prize funds to charitable organizations.
When Pulp earned the prize in the mid-90s for their album Different Class, lead singer the singer declared that the band would donate their cash to the organization War Child.
That year, artist she split her bounty between several charities, such as the NSPCC and a charity for Sickle Cell.
"I also contributed a thousand pounds to Highgate Newtown, to their classes, because I trained in gymnastics when I was a child and they needed new equipment," Ms Dynamite told a publication.
In recent years, they gave their prize money to the local youth club that supported their group, alongside other local music groups.
Additionally the 1994 recipients the group contributed their prize to a multiple sclerosis charity after a close contact was found to have the disease.
"Receiving the award was sufficient," remarked vocalist Heather Small. "The cash was the bonus but we didn't require the extra, because we had the cake. So our victory touched the lives of others."
In the past week, the Music Venues Trust announced it had protected two grassroots venues in that region, by transferring them to local control.
The first in the city and The Croft in Bristol were purchased under the Own Our Venues initiative, which is funded by Arts Council England and supporters who purchase "ownership units" in the buildings.