The artist has donated the complete sum of his £25k honor winnings to the Music Venues Trust, which works to preserve the Britain's small concert spaces.
He was awarded the award on 16 October as his third album People Watching was named the outstanding release of the last 12 months.
The musician has chosen to hand the money over to the trust, in appreciation of the essential function small stages played in his early career.
"I personally would not have achieved this success if it wasn't for all the performances I performed around the area, and beyond, when I was beginning," remarked Sam Fender. "These spaces are legendary, but they are facing challenges."
Since the start of 2023, more than 150 of these spaces have permanently closed – about 16 percent of the total UK scene.
In the last year, major artists including Pulp, the group Coldplay, the singer Katy Perry and Sheeran have all aided the MVT in its initiatives to keep the scene afloat, by adding a small levy to their admission fees, which goes to help local stages.
Fender also took part, raising in excess of £100,000 on his 2024 arena tour to help 38 small stages across Britain.
The donation helped venues that were confronting potential shutdown due to issues stemming from floods, blazes and personal losses, as well as licensing issues, legal disputes and noise complaints.
Additional spaces received funding support in upgrading amenities and technical equipment that directly benefitted performers and audiences.
"The idea that revenue from concerts in major spaces supports the smaller venues, where it begins for musicians like me, is just sensible," the star has stated.
The musician is far from the only musician to donate his Mercury Prize funds to charitable organizations.
Back when Pulp earned the award in the mid-90s for their album Different Class, frontman Jarvis Cocker declared that the act would donate their winnings to the organization the charity.
In 2002, artist the artist shared her prize among multiple good causes, like the NSPCC and a Sickle Cell charity.
"Additionally, I donated a grand to the center, to their gymnastics program, because I practiced gymnastics when I was growing up and they required better apparatus," Ms Dynamite shared with the media.
Two years ago, the band donated their prize money to the community center that supported their band, as well as other independent music bodies.
Also 1994 winners M People donated their award to a charity for MS after a close contact was diagnosed the illness.
"The victory was sufficient," remarked vocalist Small. "The prize was the bonus but we could do without the extra, because we had the honor. So our winning affected the lives of others."
Recently, the MVT shared it had rescued a couple of grassroots venues in south-east England, by placing them under public stewardship.
The Joiners in the city and the other in Bristol were purchased under the Own Our Venues initiative, which is funded by a national body and enthusiasts who acquire "ownership units" in the buildings.
