The artist has given the complete sum of his £25k honor prize money to the Music Venues Trust, which operates to protect the United Kingdom's independent live music spots.
The star was given the prize on October 16 as his latest record the album was named the outstanding release of the last 12 months.
The musician has chosen to hand the money over to the trust, in recognition of the essential function small stages played in his early career.
"I would not have achieved what I am doing today if it weren't for all the performances I performed around the North East, and elsewhere, when I was just getting going," remarked Sam Fender. "These spaces are iconic, but they are in difficulty."
Beginning in 2023, at least 150 of these locations have permanently closed – about 16 percent of the total UK scene.
Over the past year, major artists such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its attempts to keep the scene afloat, by including a small levy to their admission fees, which benefits smaller concert halls.
Sam Fender also participated, raising over £100k on his recent tour to assist 38 grassroots venues across the UK.
The money assisted venues that were confronting imminent closure due to challenges caused by flooding, fires and family tragedies, as well as licensing issues, legal disputes and sound issues.
Some locations were granted monetary aid in upgrading amenities and technical equipment that directly benefitted performers and concertgoers.
"The idea that money from shows in large arenas helps the smaller venues, where it begins for performers like me, is just sensible," the star has stated.
The musician is not the first artist to give his Mercury Prize funds to charitable organizations.
When they won the trophy in the mid-90s for their album Different Class, vocalist the singer declared that the act would give their cash to the organization the charity.
That year, artist she shared her prize between several organizations, like the children's charity and a Sickle Cell organization.
"I also donated a grand to my local community centre, to their gymnastics program, because I trained in gymnastics when I was a child and they lacked better apparatus," the artist explained to a publication.
Previously, they donated their prize money to the community center that developed their act, as well as other independent music bodies.
And the 1994 recipients M People donated their award to a charity for MS after a friend was found to have the condition.
"Receiving the award was quite enough," stated singer Heather Small. "The cash was the cherry on top but we didn't need the bonus, because we had the honor. So our success touched the lives of others."
In the past week, the MVT shared it had protected a couple of small stages in that region, by transferring them to community ownership.
The Joiners in the city and the other in Bristol were bought under the Own Our Venues initiative, which is supported by the arts council and enthusiasts who acquire "ownership units" in the venues.