The star has given the entirety of his twenty-five thousand pound award prize money to the Music Venues Trust, which functions to save the Britain's small concert spaces.
The star was presented with the cheque on October 16 as his third album the album was named the best record of the previous year.
Fender has opted to hand the money over to the trust, in recognition of the crucial part local spots had in his early career.
"I personally wouldn't be doing my current career if it hadn't been for all the gigs I did around the North East, and further afield, when I was beginning," remarked Sam Fender. "These spaces are legendary, but they are facing challenges."
Since the start of 2023, more than 150 of these locations have permanently closed – about one-sixth of the entire UK sector.
Over the past year, well-known musicians like Pulp, Coldplay, Katy Perry and Sheeran have all backed the Music Venues Trust in its attempts to help venues survive, by adding a minor surcharge to their admission fees, which goes to help local stages.
Fender also participated, generating over £100k on his 2024 arena tour to assist numerous grassroots venues across Britain.
The money supported spaces that were facing potential shutdown due to difficulties stemming from flooding, fires and personal losses, as well as permit problems, court cases and neighbor objections.
Additional spaces were granted monetary aid in modernizing amenities and technical equipment that positively impacted artists and fans.
"The concept that revenue from concerts in big venues helps the smaller venues, where it kicks off for musicians like me, is just sensible," Sam Fender has stated.
He is far from the only musician to donate his Mercury Prize funds to charitable organizations.
When they received the trophy in the year 1996 for their record their work, lead singer the singer stated that the act would contribute their prize money to the charity War Child.
In 2002, musician the artist divided her bounty across multiple organizations, such as the NSPCC and a Sickle Cell charity.
"I also contributed a grand to Highgate Newtown, to their classes, because I trained in gymnastics when I was younger and they lacked new equipment," Ms Dynamite shared with outlets.
In recent years, the band donated their winnings to the community center that developed their act, as well as other grassroots music organisations.
Also winners that year the group donated their winnings to a charity for MS after a friend was diagnosed the illness.
"Winning was ample," said artist Small. "The money was the cherry on top but we didn't require the extra, because we had the honor. So our success touched another person's life."
Recently, the Music Venues Trust revealed it had protected several local spots in south-east England, by transferring them to community ownership.
The first in the city and the second in Bristol were acquired under the public acquisition initiative, which is funded by the arts council and enthusiasts who acquire "ownership units" in the venues.