The artist has donated the full amount of his £25,000 award prize money to the Music Venues Trust, which works to protect the UK's grassroots live music spots.
Fender was awarded the prize on mid-October as his third album People Watching was declared the outstanding release of the previous year.
He has chosen to hand the money over to the Music Venues Trust, in recognition of the vital role local spots had in his early career.
"As an artist couldn't be pursuing this success if it hadn't been for all the gigs I did around the area, and elsewhere, when I was just getting going," stated Fender. "These locations are renowned, but they are in difficulty."
Since the start of 2023, at least 150 of these locations have permanently closed – approximately 16% of the total UK scene.
Recently, top acts like Pulp, Coldplay, Katy Perry and Sheeran have all supported the MVT in its initiatives to help venues survive, by applying a modest fee to their ticket prices, which supports smaller concert halls.
He also took part, raising over £100k on his recent tour to support thirty-eight grassroots venues across the UK.
The money supported spaces that were confronting potential shutdown due to challenges stemming from flooding, blazes and bereavements, as well as licensing issues, legal disputes and noise complaints.
Other venues obtained funding support in improving facilities and sound and lighting systems that positively impacted artists and concertgoers.
"The notion that funds from performances in large arenas supports the local stages, where it all starts for performers like me, is just sensible," Sam Fender has stated.
Fender is among several artists to donate his Mercury Prize winnings to good deeds.
When Pulp earned the award in 1996 for their release Different Class, lead singer Cocker stated that the act would donate their cash to the organization War Child.
In 2002, musician Ms Dynamite shared her bounty between a few good causes, like the NSPCC and a charity for Sickle Cell.
"I also donated a grand to my local community centre, to their classes, because I practiced gymnastics when I was a child and they needed new equipment," Ms Dynamite told a publication.
In recent years, the band gave their winnings to the community center that supported their group, alongside other grassroots music organisations.
Also winners that year M People donated their winnings to a multiple sclerosis charity after a acquaintance was diagnosed the illness.
"Receiving the award was ample," said singer Small. "The prize was the extra but we didn't require the cherry, because we had the main prize. So our winning touched somebody else's life."
In the past week, the Music Venues Trust revealed it had rescued several local spots in the South East, by placing them under public stewardship.
The Joiners in Southampton and The Croft in Bristol were purchased under the community ownership initiative, which is backed by a national body and enthusiasts who acquire "shares" in the properties.
