The artist has handed over the complete sum of his £25,000 award prize money to the Music Venues Trust, which works to protect the UK's independent concert spaces.
He was awarded the prize on 16 October as his new release his work was chosen as the outstanding release of the last 12 months.
He has chosen to donate the funds to the trust, in recognition of the essential function small stages had in his early career.
"I wouldn't be doing what I am doing today if it wasn't for all the gigs I performed around the region, and further afield, when I was just getting going," stated the artist. "These venues are legendary, but they are facing challenges."
Beginning in 2023, more than 150 of these locations have permanently closed – roughly 16% of the whole industry in the UK.
In the last year, top acts like Pulp, Coldplay, the singer Katy Perry and Sheeran have all backed the trust in its attempts to help venues survive, by applying a minor surcharge to their ticket prices, which benefits independent venues.
He also joined in, generating over £100k on his 2024 arena tour to assist 38 small stages across England, Scotland, and Wales.
The money assisted spaces that were dealing with potential shutdown due to difficulties arising from water damage, blazes and bereavements, as well as permit problems, court cases and sound issues.
Other venues received funding support in improving infrastructure and sound and lighting systems that helped performers and audiences.
"The notion that revenue from shows in major spaces supports the local stages, where it all starts for musicians like me, is just logical," Sam Fender has stated.
Fender is not the first artist to give his Mercury Prize prize money to worthy causes.
Back when they received the prize in 1996 for their record the album, frontman Jarvis Cocker stated that the group would donate their prize money to the non-profit the charity.
In 2002, musician the artist split her prize between several charities, such as the NSPCC and a Sickle Cell organization.
"I also gave a thousand pounds to the center, to their gymnastics program, because I did gymnastics when I was a child and they needed better apparatus," Ms Dynamite told outlets.
Two years ago, they contributed their prize money to the community center that developed their band, as well as other grassroots music organisations.
Also winners that year they gave their award to a charity for MS after a acquaintance was identified with the disease.
"The victory was ample," said artist Heather Small. "The cash was the bonus but we didn't need the extra, because we had the main prize. So our success touched the lives of others."
Last week, the trust announced it had saved two local spots in that region, by bringing them into community ownership.
The Joiners in Southampton and The Croft in that location were acquired under the community ownership program, which is backed by a national body and enthusiasts who buy "ownership units" in the buildings.