The star has handed over the complete sum of his £25k award cash to the MVT, which works to save the Britain's independent live music spots.
He was given the cheque on 16 October as his latest record People Watching was chosen as the outstanding release of the last 12 months.
Fender has decided to give the cash to the Music Venues Trust, in acknowledgment of the essential function grassroots venues played in his initial steps.
"I wouldn't be doing this success if it weren't for all the shows I played around the area, and elsewhere, when I was starting out," remarked Sam Fender. "These spaces are legendary, but they are struggling."
Since the start of 2023, at least 150 of these spaces have permanently closed – roughly 16 percent of the whole industry in the UK.
In the last year, well-known musicians like Pulp, the group Coldplay, Katy Perry and Sheeran have all aided the MVT in its efforts to support the industry, by including a minor surcharge to their ticket prices, which supports smaller concert halls.
He also joined in, collecting more than £100,000 on his 2024 arena tour to help thirty-eight grassroots venues across Britain.
The money assisted venues that were facing imminent closure due to challenges arising from water damage, fire incidents and family tragedies, as well as permit problems, court cases and noise complaints.
Other venues obtained funding support in improving facilities and technical equipment that helped artists and audiences.
"The idea that revenue from shows in big venues supports the local stages, where it all starts for artists like me, is just logical," Fender has stated.
He is far from the only musician to give his Mercury Prize funds to worthy causes.
Back when the band received the trophy in the year 1996 for their release Different Class, vocalist the singer announced that the act would give their cash to the charity the charity.
During 2002, musician Ms Dynamite shared her award between multiple charities, including the NSPCC and a Sickle Cell organization.
"And I gave a thousand pounds to my local community centre, to their gymnastics program, because I did gymnastics when I was growing up and they lacked updated gear," she shared with the media.
Previously, the band gave their funds to the local youth club that supported their band, in addition to other grassroots music organisations.
And the 1994 recipients the group gave their prize to a MS organization after a friend was diagnosed the condition.
"Receiving the award was quite enough," stated vocalist Heather Small. "The prize was the cherry on top but we didn't need the bonus, because we had the honor. So our success affected the lives of others."
Recently, the Music Venues Trust revealed it had rescued a couple of local spots in south-east England, by placing them under public stewardship.
The first in Southampton and the other in the city were acquired under the community ownership program, which is backed by a national body and enthusiasts who buy "ownership units" in the buildings.