The star has given the complete sum of his £25k award prize money to the Music Venues Trust, which operates to preserve the United Kingdom's grassroots concert spaces.
Fender was awarded the award on 16 October as his latest record People Watching was chosen as the outstanding release of the past year.
He has chosen to hand the money over to the MVT, in recognition of the crucial part grassroots venues had in his initial steps.
"I personally couldn't be pursuing what I am doing today if it weren't for all the gigs I played around the North East, and elsewhere, when I was just getting going," said Sam Fender. "These venues are renowned, but they are facing challenges."
Beginning in 2023, over 150 of these locations have ceased operations – roughly 16 percent of the whole industry in the UK.
Over the past year, well-known musicians like the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its efforts to support the industry, by adding a minor surcharge to their ticket costs, which benefits independent venues.
He also joined in, collecting in excess of £100,000 on his recent tour to assist numerous grassroots venues across England, Scotland, and Wales.
The money supported venues that were confronting possible closure due to challenges stemming from floods, fire incidents and bereavements, as well as licensing issues, court cases and noise complaints.
Other venues received monetary aid in modernizing infrastructure and gear that helped artists and audiences.
"The notion that funds from performances in large arenas helps the local stages, where it all starts for performers like me, is just common sense," Sam Fender has commented.
Fender is far from the only musician to donate his Mercury Prize funds to good deeds.
Back when they earned the prize in the year 1996 for their release the album, frontman Cocker declared that the act would give their prize money to the charity War Child.
That year, artist she divided her prize between a few good causes, including the children's charity and a Sickle Cell organization.
"And I contributed a £1,000 to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was growing up and they needed new equipment," Ms Dynamite explained to outlets.
Two years ago, they donated their prize money to the community center that supported their band, alongside other grassroots music organisations.
And 1994 winners they gave their award to a MS organization after a friend was identified with the disease.
"The victory was ample," stated vocalist Heather Small. "The money was the extra but we didn't require the extra, because we had the honor. So our winning affected somebody else's life."
Recently, the trust revealed it had saved two grassroots venues in that region, by bringing them into community ownership.
The Joiners in the city and the other in Bristol were acquired under the Own Our Venues scheme, which is funded by Arts Council England and supporters who purchase "shares" in the venues.
