The artist has donated the entirety of his twenty-five thousand pound award cash to the MVT, which works to preserve the United Kingdom's grassroots concert spaces.
He was awarded the cheque on October 16 as his new release People Watching was declared the outstanding release of the previous year.
He has chosen to donate the funds to the Music Venues Trust, in appreciation of the crucial part small stages played in his beginning days.
"I wouldn't be doing what I am doing today if it weren't for all the gigs I played around the area, and beyond, when I was just getting going," stated Fender. "These locations are renowned, but they are in difficulty."
Beginning in 2023, at least 150 of these venues have permanently closed – approximately 16% of the total UK scene.
Over the past year, top acts such as Pulp, Coldplay, Katy Perry and Sheeran have all aided the trust in its efforts to support the industry, by including a modest fee to their ticket prices, which benefits local stages.
He also joined in, raising over £100k on his live tour to help thirty-eight local spots across England, Scotland, and Wales.
These funds helped locations that were confronting possible closure due to difficulties caused by water damage, fire incidents and personal losses, as well as regulatory hurdles, court cases and noise complaints.
Some locations received funding support in modernizing facilities and sound and lighting systems that directly benefitted performers and concertgoers.
"The notion that revenue from performances in large arenas supports the local stages, where it kicks off for artists like me, is just logical," Sam Fender has stated.
Fender is not the first artist to contribute his Mercury Prize prize money to charitable organizations.
When Pulp received the award in the mid-90s for their album Different Class, lead singer Jarvis Cocker announced that the act would give their prize money to the non-profit War Child.
In 2002, artist Ms Dynamite divided her award between multiple organizations, such as the NSPCC and a Sickle Cell organization.
"And I gave a thousand pounds to the center, to their classes, because I trained in gymnastics when I was younger and they needed updated gear," the artist explained to outlets.
In recent years, the band donated their funds to the local youth club that developed their band, in addition to other independent music bodies.
Also winners that year M People gave their winnings to a MS organization after a acquaintance was diagnosed the condition.
"Winning was ample," stated vocalist Heather Small. "The prize was the bonus but we could do without the bonus, because we had the cake. So our winning impacted the lives of others."
Recently, the MVT announced it had saved two small stages in that region, by placing them under community ownership.
One venue in the city and the second in that location were acquired under the public acquisition initiative, which is backed by a national body and enthusiasts who acquire "ownership units" in the venues.