The star has given the entirety of his twenty-five thousand pound award prize money to the Music Venues Trust, which works to save the Britain's small concert spaces.
He was presented with the award on 16 October as his latest record People Watching was declared the outstanding release of the previous year.
He has chosen to donate the funds to the Music Venues Trust, in acknowledgment of the crucial part local spots fulfilled in his beginning days.
"I personally wouldn't be doing this success if it wasn't for all the performances I performed around the region, and beyond, when I was starting out," remarked Sam Fender. "These locations are legendary, but they are in difficulty."
Beginning in 2023, at least 150 of these spaces have ceased operations – approximately 16 percent of the whole industry in the UK.
Recently, well-known musicians including Pulp, Coldplay, the singer Katy Perry and Sheeran have all backed the trust in its attempts to support the industry, by adding a small levy to their admission fees, which goes to help smaller concert halls.
Fender also participated, raising over £100k on his live tour to support thirty-eight local spots across Britain.
These funds helped venues that were facing possible closure due to challenges stemming from floods, fire incidents and bereavements, as well as regulatory hurdles, conflicts and noise complaints.
Other venues were granted financial assistance in improving amenities and technical equipment that positively impacted artists and fans.
"The notion that funds from performances in large arenas helps the local stages, where it kicks off for musicians like me, is just logical," the star has said.
Fender is far from the only musician to contribute his Mercury Prize funds to good deeds.
When the band received the award in the year 1996 for their release Different Class, vocalist the singer declared that the group would contribute their cash to the non-profit the charity.
That year, artist Ms Dynamite divided her prize across several organizations, like the children's charity and a charity for Sickle Cell.
"I also gave a thousand pounds to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was growing up and they lacked updated gear," she told outlets.
Previously, they gave their prize money to the community center that nurtured their act, alongside other local music groups.
Also winners that year M People contributed their winnings to a multiple sclerosis charity after a close contact was diagnosed the illness.
"Winning was sufficient," said artist the singer. "The cash was the cherry on top but we didn't need the extra, because we had the honor. So our success affected somebody else's life."
Recently, the Music Venues Trust shared it had protected a couple of local spots in south-east England, by bringing them into community ownership.
One venue in that area and the second in Bristol were bought under the public acquisition program, which is backed by a national body and enthusiasts who acquire "stakes" in the venues.
