The artist has handed over the full amount of his £25,000 award prize money to the Music Venues Trust, which functions to save the Britain's independent music venues.
The star was presented with the award on mid-October as his latest record his work was chosen as the top album of the past year.
The musician has chosen to hand the money over to the trust, in acknowledgment of the essential function grassroots venues fulfilled in his initial steps.
"I would not have achieved what I am doing today if it weren't for all the shows I performed around the area, and further afield, when I was just getting going," stated the artist. "These locations are iconic, but they are facing challenges."
Beginning in 2023, more than 150 of these locations have shut down – roughly 16 percent of the whole industry in the UK.
Recently, well-known musicians such as Pulp, Coldplay, the singer Katy Perry and Sheeran have all backed the MVT in its attempts to help venues survive, by including a modest fee to their ticket prices, which goes to help local stages.
Fender also took part, collecting more than £100,000 on his 2024 arena tour to help thirty-eight local spots across the UK.
The money assisted locations that were confronting potential shutdown due to challenges arising from flooding, fires and family tragedies, as well as regulatory hurdles, legal disputes and noise complaints.
Some locations were granted funding support in improving facilities and sound and lighting systems that positively impacted artists and fans.
"The idea that funds from concerts in large arenas helps the smaller venues, where it all starts for musicians like me, is just sensible," Sam Fender has commented.
Fender is not the first artist to give his Mercury Prize winnings to good deeds.
When Pulp earned the prize in the mid-90s for their album their work, frontman Jarvis Cocker announced that the act would donate their cash to the non-profit War Child.
That year, musician Ms Dynamite split her prize across a few charities, including the NSPCC and a Sickle Cell charity.
"I also donated a £1,000 to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was growing up and they needed updated gear," the artist told the media.
Previously, Ezra Collective donated their prize money to the community center that nurtured their group, as well as other independent music bodies.
Additionally winners that year the group donated their winnings to a charity for MS after a close contact was diagnosed the condition.
"Winning was sufficient," remarked singer Small. "The prize was the bonus but we didn't need the cherry, because we had the honor. So our winning impacted the lives of others."
Recently, the Music Venues Trust revealed it had rescued a couple of grassroots venues in the South East, by bringing them into public stewardship.
The first in that area and The Croft in that location were bought under the Own Our Venues scheme, which is supported by the arts council and enthusiasts who acquire "ownership units" in the buildings.