The star has donated the complete sum of his £25,000 award winnings to the Music Venues Trust, which works to preserve the Britain's independent concert spaces.
He was presented with the prize on 16 October as his new release his work was declared the top album of the previous year.
Fender has decided to hand the money over to the MVT, in appreciation of the crucial part small stages played in his early career.
"As an artist wouldn't be doing my current career if it weren't for all the gigs I played around the area, and elsewhere, when I was just getting going," said Sam Fender. "These venues are iconic, but they are struggling."
Beginning in 2023, at least 150 of these venues have permanently closed – roughly one-sixth of the entire UK sector.
Recently, top acts including Pulp, Coldplay, Katy Perry and Sheeran have all aided the trust in its initiatives to support the industry, by applying a modest fee to their ticket costs, which benefits local stages.
He also took part, collecting more than £100,000 on his live tour to help thirty-eight grassroots venues across Britain.
These funds assisted locations that were facing potential shutdown due to difficulties arising from floods, fire incidents and bereavements, as well as permit problems, legal disputes and neighbor objections.
Some locations obtained monetary aid in upgrading amenities and gear that helped performers and audiences.
"The idea that money from concerts in major spaces supports the independent spots, where it kicks off for performers like me, is just logical," Sam Fender has commented.
He is not the first artist to donate his Mercury Prize prize money to charitable organizations.
Back when Pulp won the trophy in the year 1996 for their album the album, vocalist Jarvis Cocker declared that the group would contribute their prize money to the non-profit War Child.
That year, artist Ms Dynamite split her bounty between multiple good causes, like the children's charity and a Sickle Cell organization.
"I also contributed a grand to Highgate Newtown, to their gymnastics program, because I trained in gymnastics when I was a child and they needed new equipment," the artist explained to the media.
In recent years, they donated their prize money to the local youth club that nurtured their group, as well as other local music groups.
And the 1994 recipients they donated their winnings to a MS organization after a friend was identified with the disease.
"Winning was sufficient," remarked singer the singer. "The cash was the bonus but we didn't require the extra, because we had the honor. So our victory impacted the lives of others."
Recently, the MVT revealed it had protected a couple of small stages in south-east England, by placing them under community ownership.
One venue in that area and The Croft in that location were purchased under the community ownership scheme, which is supported by the arts council and music fans who buy "ownership units" in the buildings.
