The artist has donated the entirety of his £25,000 award cash to the MVT, which operates to save the Britain's independent music venues.
The star was given the award on October 16 as his third album his work was declared the top album of the past year.
Fender has decided to give the cash to the Music Venues Trust, in appreciation of the vital role small stages had in his beginning days.
"As an artist wouldn't be doing my current career if it weren't for all the gigs I did around the region, and beyond, when I was beginning," remarked Sam Fender. "These venues are iconic, but they are facing challenges."
Since the start of 2023, more than 150 of these spaces have ceased operations – approximately 16 percent of the entire UK sector.
In the last year, well-known musicians such as the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the trust in its attempts to support the industry, by including a small levy to their ticket prices, which supports independent venues.
He also participated, raising in excess of £100,000 on his 2024 arena tour to help thirty-eight local spots across England, Scotland, and Wales.
These funds assisted locations that were dealing with potential shutdown due to challenges stemming from water damage, fires and bereavements, as well as licensing issues, conflicts and neighbor objections.
Additional spaces were granted financial assistance in improving amenities and gear that positively impacted musicians and concertgoers.
"The notion that funds from performances in big venues helps the local stages, where it all starts for artists like me, is just common sense," the star has said.
He is far from the only musician to contribute his Mercury Prize funds to worthy causes.
When they received the prize in the mid-90s for their album Different Class, lead singer Jarvis Cocker stated that the band would give their winnings to the charity War Child.
In 2002, musician Ms Dynamite shared her bounty across a few organizations, including the NSPCC and a Sickle Cell charity.
"And I donated a £1,000 to my local community centre, to their classes, because I trained in gymnastics when I was younger and they required better apparatus," she shared with the media.
In recent years, they gave their funds to the community center that nurtured their group, as well as other local music groups.
Additionally the 1994 recipients the group contributed their award to a charity for MS after a close contact was found to have the condition.
"The victory was quite enough," remarked artist Heather Small. "The prize was the cherry on top but we didn't require the bonus, because we had the honor. So our success touched another person's life."
In the past week, the MVT shared it had protected several small stages in the South East, by transferring them to community ownership.
The first in Southampton and the other in Bristol were acquired under the Own Our Venues initiative, which is backed by Arts Council England and enthusiasts who purchase "ownership units" in the properties.
