The star has given the entirety of his £25k award winnings to the Music Venues Trust, which functions to preserve the Britain's independent live music spots.
He was presented with the cheque on 16 October as his latest record his work was named the outstanding release of the past year.
Fender has decided to give the cash to the MVT, in acknowledgment of the essential function small stages had in his early career.
"I personally wouldn't be doing this success if it hadn't been for all the shows I played around the region, and beyond, when I was beginning," stated the artist. "These locations are legendary, but they are struggling."
Since the start of 2023, over 150 of these spaces have permanently closed – roughly one-sixth of the entire UK sector.
Recently, top acts like the band Pulp, Coldplay, Katy Perry and Sheeran have all supported the trust in its efforts to help venues survive, by including a small levy to their ticket prices, which goes to help local stages.
Fender also took part, collecting over £100k on his 2024 arena tour to support numerous grassroots venues across the UK.
The money helped locations that were confronting potential shutdown due to difficulties arising from water damage, blazes and bereavements, as well as permit problems, court cases and noise complaints.
Other venues were granted monetary aid in improving infrastructure and sound and lighting systems that directly benefitted performers and fans.
"The idea that money from shows in big venues supports the smaller venues, where it begins for artists like me, is just logical," Sam Fender has said.
The musician is far from the only musician to contribute his Mercury Prize funds to charitable organizations.
Back when Pulp earned the trophy in the mid-90s for their album the album, lead singer Jarvis Cocker announced that the band would donate their winnings to the charity War Child.
That year, musician the artist split her award among a few good causes, such as the children's charity and a Sickle Cell organization.
"I also contributed a £1,000 to Highgate Newtown, to their classes, because I practiced gymnastics when I was younger and they required new equipment," she explained to a publication.
Previously, they contributed their prize money to the community center that nurtured their act, as well as other grassroots music organisations.
Also winners that year they gave their prize to a charity for MS after a friend was diagnosed the condition.
"Winning was ample," stated singer Heather Small. "The prize was the cherry on top but we could do without the bonus, because we had the cake. So our victory affected somebody else's life."
Last week, the trust announced it had saved a couple of local spots in the South East, by placing them under local control.
The Joiners in that area and the other in that location were bought under the community ownership scheme, which is backed by Arts Council England and music fans who acquire "shares" in the buildings.
