The artist has donated the full amount of his £25k honor prize money to the trust for venues, which functions to save the United Kingdom's small music venues.
The star was given the award on October 16 as his new release the album was declared the top album of the past year.
He has chosen to hand the money over to the trust, in recognition of the vital role grassroots venues played in his initial steps.
"I would not have achieved this success if it weren't for all the gigs I did around the region, and elsewhere, when I was just getting going," said the artist. "These venues are renowned, but they are in difficulty."
Since the start of 2023, over 150 of these spaces have ceased operations – about 16 percent of the entire UK sector.
Recently, well-known musicians such as the band Pulp, Coldplay, Katy Perry and Sheeran have all backed the trust in its attempts to keep the scene afloat, by adding a minor surcharge to their admission fees, which goes to help smaller concert halls.
Fender also joined in, collecting more than £100,000 on his recent tour to support thirty-eight grassroots venues across Britain.
The donation assisted locations that were confronting imminent closure due to challenges stemming from floods, fires and family tragedies, as well as permit problems, court cases and sound issues.
Other venues were granted funding support in improving facilities and technical equipment that positively impacted performers and audiences.
"The concept that funds from shows in major spaces helps the local stages, where it all starts for performers like me, is just logical," Sam Fender has stated.
Fender is not the first artist to contribute his Mercury Prize winnings to worthy causes.
When the band earned the award in the year 1996 for their album their work, lead singer Jarvis Cocker declared that the group would give their cash to the non-profit War Child.
In 2002, artist Ms Dynamite divided her prize across multiple organizations, including the NSPCC and a charity for Sickle Cell.
"Additionally, I donated a thousand pounds to the center, to their gymnastics program, because I practiced gymnastics when I was younger and they needed updated gear," she told outlets.
In recent years, the band contributed their prize money to the local youth club that supported their band, alongside other local music groups.
Also 1994 winners M People contributed their award to a charity for MS after a close contact was identified with the illness.
"Winning was sufficient," stated artist the singer. "The cash was the cherry on top but we didn't require the bonus, because we had the cake. So our victory affected the lives of others."
Last week, the MVT revealed it had rescued a couple of small stages in that region, by placing them under community ownership.
The first in Southampton and the other in that location were purchased under the community ownership scheme, which is supported by a national body and supporters who acquire "ownership units" in the buildings.