The star has given the complete sum of his £25k honor prize money to the Music Venues Trust, which operates to save the Britain's grassroots concert spaces.
Fender was presented with the award on October 16 as his third album People Watching was named the outstanding release of the past year.
He has chosen to give the cash to the trust, in appreciation of the essential function small stages had in his beginning days.
"I personally would not have achieved what I am doing today if it hadn't been for all the gigs I played around the North East, and elsewhere, when I was beginning," said Sam Fender. "These spaces are legendary, but they are facing challenges."
From early 2023 onward, over 150 of these venues have ceased operations – about 16% of the entire UK sector.
In the last year, major artists including Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its efforts to support the industry, by adding a minor surcharge to their ticket costs, which goes to help independent venues.
He also participated, generating more than £100,000 on his 2024 arena tour to support thirty-eight small stages across the UK.
These funds assisted spaces that were dealing with imminent closure due to difficulties arising from water damage, fire incidents and personal losses, as well as licensing issues, conflicts and sound issues.
Other venues obtained financial assistance in upgrading infrastructure and sound and lighting systems that positively impacted artists and audiences.
"The idea that revenue from performances in large arenas supports the local stages, where it kicks off for performers like me, is just sensible," Fender has commented.
He is not the first artist to donate his Mercury Prize funds to charitable organizations.
Back when the band earned the award in 1996 for their album Different Class, vocalist Cocker announced that the band would give their cash to the non-profit the charity.
That year, rapper and singer she divided her prize across a few good causes, including the NSPCC and a Sickle Cell charity.
"Additionally, I donated a £1,000 to my local community centre, to their gymnastics class, because I practiced gymnastics when I was a child and they required new equipment," the artist explained to outlets.
Two years ago, they donated their funds to the community center that nurtured their group, in addition to other independent music bodies.
Additionally the 1994 recipients M People donated their winnings to a multiple sclerosis charity after a acquaintance was found to have the condition.
"Winning was quite enough," remarked vocalist Heather Small. "The cash was the cherry on top but we didn't require the bonus, because we had the cake. So our winning affected the lives of others."
Recently, the Music Venues Trust shared it had rescued two grassroots venues in that region, by bringing them into local control.
One venue in Southampton and the second in the city were purchased under the community ownership initiative, which is supported by a national body and supporters who purchase "stakes" in the properties.