The star has given the complete sum of his £25,000 honor winnings to the MVT, which operates to save the UK's small concert spaces.
He was presented with the prize on mid-October as his third album the album was chosen as the top album of the last 12 months.
He has opted to give the cash to the MVT, in recognition of the crucial part grassroots venues played in his early career.
"As an artist would not have achieved my current career if it weren't for all the performances I did around the area, and further afield, when I was beginning," said Sam Fender. "These venues are iconic, but they are in difficulty."
From early 2023 onward, over 150 of these locations have ceased operations – approximately one-sixth of the whole industry in the UK.
In the last year, well-known musicians including the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its efforts to keep the scene afloat, by adding a modest fee to their ticket prices, which supports local stages.
Sam Fender also joined in, collecting more than £100,000 on his recent tour to support numerous local spots across the UK.
The money assisted venues that were dealing with potential shutdown due to challenges arising from water damage, fire incidents and family tragedies, as well as regulatory hurdles, court cases and sound issues.
Additional spaces were granted financial assistance in modernizing infrastructure and sound and lighting systems that directly benefitted artists and audiences.
"The concept that money from concerts in major spaces helps the local stages, where it all starts for performers like me, is just common sense," the star has stated.
Fender is far from the only musician to contribute his Mercury Prize funds to charitable organizations.
In Pulp received the prize in 1996 for their record the album, lead singer Jarvis Cocker declared that the band would contribute their cash to the organization War Child.
In 2002, rapper and singer Ms Dynamite shared her award across multiple organizations, like the NSPCC and a Sickle Cell charity.
"And I gave a thousand pounds to the center, to their classes, because I practiced gymnastics when I was younger and they needed updated gear," the artist told outlets.
Previously, they gave their winnings to the local youth club that nurtured their act, as well as other independent music bodies.
Also 1994 winners they gave their prize to a MS organization after a acquaintance was identified with the disease.
"Winning was ample," stated vocalist Heather Small. "The cash was the extra but we didn't need the cherry, because we had the honor. So our victory touched somebody else's life."
Recently, the MVT shared it had saved several local spots in the South East, by bringing them into public stewardship.
The first in the city and the second in the city were acquired under the public acquisition initiative, which is backed by Arts Council England and music fans who acquire "ownership units" in the venues.
