The star has handed over the entirety of his twenty-five thousand pound honor winnings to the Music Venues Trust, which works to save the UK's grassroots live music spots.
He was awarded the award on October 16 as his latest record People Watching was chosen as the best record of the last 12 months.
He has opted to donate the funds to the trust, in appreciation of the vital role small stages had in his early career.
"I personally wouldn't be doing this success if it hadn't been for all the performances I played around the area, and beyond, when I was starting out," remarked Sam Fender. "These venues are iconic, but they are facing challenges."
Beginning in 2023, at least 150 of these locations have shut down – about one-sixth of the whole industry in the UK.
Over the past year, well-known musicians including Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its attempts to keep the scene afloat, by including a small levy to their ticket prices, which benefits smaller concert halls.
Sam Fender also participated, raising in excess of £100,000 on his recent tour to assist numerous small stages across Britain.
The donation supported locations that were facing potential shutdown due to issues arising from flooding, fire incidents and bereavements, as well as regulatory hurdles, legal disputes and neighbor objections.
Additional spaces received financial assistance in modernizing infrastructure and technical equipment that positively impacted artists and audiences.
"The concept that revenue from concerts in large arenas supports the local stages, where it all starts for musicians like me, is just logical," Sam Fender has said.
The musician is among several artists to give his Mercury Prize funds to good deeds.
Back when Pulp earned the award in 1996 for their release the album, vocalist Jarvis Cocker stated that the act would donate their cash to the charity War Child.
In 2002, artist Ms Dynamite divided her prize among a few organizations, like the children's charity and a Sickle Cell organization.
"And I contributed a thousand pounds to Highgate Newtown, to their classes, because I did gymnastics when I was younger and they required new equipment," she told the media.
In recent years, Ezra Collective gave their prize money to the local youth club that developed their group, in addition to other grassroots music organisations.
Also the 1994 recipients M People donated their prize to a multiple sclerosis charity after a friend was diagnosed the disease.
"Receiving the award was ample," remarked vocalist the singer. "The prize was the cherry on top but we didn't need the cherry, because we had the cake. So our success affected somebody else's life."
Last week, the Music Venues Trust announced it had saved several small stages in south-east England, by placing them under community ownership.
The first in Southampton and The Croft in that location were acquired under the community ownership scheme, which is funded by a national body and enthusiasts who buy "stakes" in the venues.
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