The star has donated the full amount of his twenty-five thousand pound honor winnings to the MVT, which functions to protect the United Kingdom's independent concert spaces.
Fender was given the cheque on 16 October as his new release People Watching was chosen as the best record of the last 12 months.
The musician has decided to hand the money over to the Music Venues Trust, in appreciation of the crucial part grassroots venues fulfilled in his early career.
"I personally would not have achieved what I am doing today if it weren't for all the shows I did around the region, and further afield, when I was starting out," remarked Sam Fender. "These locations are legendary, but they are in difficulty."
From early 2023 onward, at least 150 of these spaces have shut down – approximately one-sixth of the entire UK sector.
Recently, major artists such as Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its attempts to keep the scene afloat, by applying a minor surcharge to their ticket prices, which supports smaller concert halls.
Sam Fender also took part, collecting over £100k on his recent tour to assist numerous small stages across England, Scotland, and Wales.
The money assisted spaces that were facing possible closure due to difficulties arising from water damage, fire incidents and family tragedies, as well as regulatory hurdles, court cases and noise complaints.
Additional spaces were granted funding support in improving infrastructure and technical equipment that helped musicians and fans.
"The concept that money from concerts in major spaces supports the independent spots, where it kicks off for artists like me, is just sensible," Fender has commented.
Fender is not the first artist to give his Mercury Prize winnings to worthy causes.
When they received the award in the mid-90s for their album Different Class, lead singer Cocker announced that the act would donate their cash to the non-profit War Child.
That year, musician the artist divided her bounty among a few good causes, like the NSPCC and a charity for Sickle Cell.
"And I gave a grand to the center, to their classes, because I did gymnastics when I was a child and they lacked better apparatus," the artist told a publication.
Two years ago, Ezra Collective gave their winnings to the youth organization that nurtured their band, as well as other grassroots music organisations.
Also winners that year the group donated their award to a MS organization after a close contact was identified with the illness.
"The victory was quite enough," remarked vocalist Heather Small. "The money was the cherry on top but we didn't require the extra, because we had the honor. So our victory touched another person's life."
Last week, the trust announced it had protected a couple of grassroots venues in south-east England, by transferring them to community ownership.
The first in Southampton and The Croft in the city were bought under the community ownership initiative, which is backed by a national body and music fans who acquire "ownership units" in the properties.