The star has donated the full amount of his £25k honor prize money to the Music Venues Trust, which functions to save the United Kingdom's grassroots music venues.
He was presented with the prize on mid-October as his new release his work was chosen as the outstanding release of the past year.
Fender has chosen to hand the money over to the MVT, in appreciation of the vital role small stages had in his initial steps.
"I personally would not have achieved what I am doing today if it hadn't been for all the performances I performed around the region, and beyond, when I was just getting going," said Fender. "These spaces are renowned, but they are in difficulty."
From early 2023 onward, over 150 of these venues have ceased operations – roughly 16% of the whole industry in the UK.
Over the past year, top acts like Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its initiatives to help venues survive, by adding a modest fee to their ticket costs, which goes to help local stages.
Sam Fender also participated, generating over £100k on his live tour to support numerous small stages across England, Scotland, and Wales.
These funds assisted spaces that were confronting imminent closure due to issues stemming from water damage, blazes and family tragedies, as well as regulatory hurdles, court cases and noise complaints.
Other venues were granted monetary aid in upgrading infrastructure and technical equipment that positively impacted performers and audiences.
"The notion that funds from shows in major spaces helps the independent spots, where it kicks off for musicians like me, is just common sense," the star has stated.
Fender is among several artists to contribute his Mercury Prize prize money to good deeds.
Back when Pulp won the trophy in 1996 for their record the album, vocalist Cocker declared that the band would contribute their prize money to the charity War Child.
In 2002, musician she shared her award among a few charities, like the children's charity and a Sickle Cell charity.
"And I donated a grand to my local community centre, to their gymnastics class, because I trained in gymnastics when I was younger and they lacked updated gear," the artist shared with outlets.
Two years ago, they gave their winnings to the youth organization that developed their group, in addition to other local music groups.
Also 1994 winners the group contributed their prize to a MS organization after a close contact was found to have the disease.
"Winning was quite enough," stated singer the singer. "The prize was the bonus but we could do without the extra, because we had the honor. So our winning touched another person's life."
Last week, the trust shared it had rescued two grassroots venues in the South East, by placing them under community ownership.
The first in Southampton and the other in the city were acquired under the public acquisition initiative, which is supported by the arts council and enthusiasts who acquire "ownership units" in the buildings.