The star has given the complete sum of his twenty-five thousand pound award cash to the MVT, which works to protect the UK's grassroots music venues.
Fender was presented with the award on October 16 as his third album People Watching was declared the top album of the previous year.
The musician has opted to donate the funds to the MVT, in appreciation of the essential function small stages played in his initial steps.
"As an artist couldn't be pursuing my current career if it weren't for all the gigs I performed around the area, and beyond, when I was starting out," said Fender. "These spaces are iconic, but they are struggling."
Since the start of 2023, more than 150 of these spaces have ceased operations – approximately 16 percent of the entire UK sector.
Over the past year, top acts such as the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its attempts to support the industry, by including a modest fee to their ticket costs, which goes to help independent venues.
Sam Fender also took part, collecting more than £100,000 on his 2024 arena tour to assist numerous local spots across England, Scotland, and Wales.
The donation supported locations that were facing possible closure due to issues arising from floods, fires and personal losses, as well as permit problems, legal disputes and noise complaints.
Other venues obtained funding support in upgrading amenities and technical equipment that helped musicians and concertgoers.
"The notion that money from shows in major spaces backs the local stages, where it kicks off for artists like me, is just sensible," Sam Fender has stated.
Fender is not the first artist to donate his Mercury Prize winnings to worthy causes.
Back when the band won the prize in the mid-90s for their album Different Class, frontman Jarvis Cocker announced that the band would give their cash to the charity War Child.
That year, artist she split her prize between multiple organizations, including the NSPCC and a Sickle Cell charity.
"Additionally, I gave a grand to my local community centre, to their gymnastics program, because I trained in gymnastics when I was growing up and they required new equipment," she explained to the media.
In recent years, Ezra Collective gave their prize money to the youth organization that supported their group, as well as other grassroots music organisations.
Also winners that year the group gave their prize to a multiple sclerosis charity after a close contact was diagnosed the condition.
"Receiving the award was ample," said artist the singer. "The prize was the bonus but we could do without the cherry, because we had the honor. So our victory impacted somebody else's life."
In the past week, the MVT announced it had saved several grassroots venues in that region, by transferring them to community ownership.
The first in that area and the second in the city were acquired under the Own Our Venues scheme, which is funded by a national body and enthusiasts who purchase "stakes" in the properties.