The artist has donated the full amount of his £25,000 award prize money to the trust for venues, which operates to preserve the UK's independent concert spaces.
He was given the award on mid-October as his latest record People Watching was chosen as the top album of the past year.
Fender has opted to donate the funds to the Music Venues Trust, in acknowledgment of the vital role local spots fulfilled in his initial steps.
"I personally would not have achieved my current career if it weren't for all the performances I did around the area, and further afield, when I was just getting going," stated Sam Fender. "These locations are renowned, but they are struggling."
Beginning in 2023, over 150 of these locations have ceased operations – roughly 16% of the entire UK sector.
Over the past year, well-known musicians like Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its initiatives to support the industry, by including a minor surcharge to their admission fees, which goes to help smaller concert halls.
Fender also joined in, raising in excess of £100,000 on his recent tour to help 38 grassroots venues across England, Scotland, and Wales.
The money supported venues that were confronting possible closure due to challenges arising from flooding, fires and family tragedies, as well as licensing issues, legal disputes and noise complaints.
Additional spaces received monetary aid in upgrading amenities and gear that positively impacted performers and concertgoers.
"The concept that money from performances in large arenas supports the smaller venues, where it begins for musicians like me, is just sensible," Fender has stated.
The musician is not the first artist to contribute his Mercury Prize prize money to good deeds.
In Pulp won the prize in the mid-90s for their record their work, lead singer Jarvis Cocker declared that the act would contribute their cash to the non-profit the charity.
During 2002, artist she split her award across multiple good causes, including the children's charity and a Sickle Cell organization.
"And I contributed a grand to the center, to their gymnastics program, because I trained in gymnastics when I was a child and they needed new equipment," the artist told outlets.
Previously, they donated their funds to the youth organization that developed their act, alongside other independent music bodies.
Additionally the 1994 recipients M People donated their winnings to a charity for MS after a acquaintance was identified with the disease.
"Winning was sufficient," remarked artist Heather Small. "The cash was the cherry on top but we could do without the extra, because we had the cake. So our winning touched another person's life."
In the past week, the trust announced it had protected two grassroots venues in that region, by bringing them into community ownership.
One venue in the city and The Croft in the city were acquired under the Own Our Venues scheme, which is funded by a national body and enthusiasts who buy "shares" in the buildings.