The star has handed over the entirety of his £25k award winnings to the MVT, which works to save the United Kingdom's independent concert spaces.
He was given the award on 16 October as his third album People Watching was declared the best record of the past year.
Fender has chosen to hand the money over to the Music Venues Trust, in appreciation of the essential function grassroots venues played in his early career.
"I couldn't be pursuing what I am doing today if it hadn't been for all the gigs I did around the region, and elsewhere, when I was beginning," remarked Sam Fender. "These venues are renowned, but they are struggling."
Since the start of 2023, more than 150 of these venues have permanently closed – about 16 percent of the entire UK sector.
In the last year, top acts including Pulp, Coldplay, the singer Katy Perry and Sheeran have all aided the Music Venues Trust in its efforts to help venues survive, by applying a modest fee to their ticket prices, which goes to help local stages.
Sam Fender also joined in, generating more than £100,000 on his 2024 arena tour to support 38 small stages across England, Scotland, and Wales.
These funds supported locations that were dealing with potential shutdown due to difficulties stemming from floods, fires and bereavements, as well as licensing issues, court cases and sound issues.
Some locations were granted monetary aid in upgrading infrastructure and technical equipment that helped performers and audiences.
"The notion that funds from performances in large arenas supports the independent spots, where it kicks off for artists like me, is just common sense," Sam Fender has stated.
Fender is not the first artist to contribute his Mercury Prize funds to worthy causes.
When they received the prize in the mid-90s for their release Different Class, frontman Jarvis Cocker announced that the act would contribute their prize money to the charity War Child.
During 2002, musician the artist divided her bounty across multiple organizations, such as the NSPCC and a charity for Sickle Cell.
"Additionally, I donated a grand to the center, to their classes, because I did gymnastics when I was a child and they lacked updated gear," she told the media.
Two years ago, Ezra Collective donated their winnings to the youth organization that nurtured their act, as well as other independent music bodies.
And winners that year they contributed their prize to a multiple sclerosis charity after a acquaintance was diagnosed the disease.
"The victory was ample," remarked vocalist Heather Small. "The prize was the bonus but we could do without the extra, because we had the main prize. So our success affected somebody else's life."
Recently, the trust revealed it had saved several local spots in the South East, by placing them under local control.
The Joiners in the city and The Croft in the city were purchased under the Own Our Venues initiative, which is funded by a national body and supporters who buy "ownership units" in the properties.
