The artist has given the full amount of his twenty-five thousand pound honor winnings to the trust for venues, which functions to save the UK's independent music venues.
Fender was given the award on October 16 as his third album People Watching was named the top album of the last 12 months.
He has decided to donate the funds to the Music Venues Trust, in acknowledgment of the crucial part local spots played in his beginning days.
"I would not have achieved this success if it hadn't been for all the gigs I performed around the region, and beyond, when I was starting out," stated Sam Fender. "These locations are renowned, but they are facing challenges."
Since the start of 2023, at least 150 of these spaces have shut down – about 16 percent of the total UK scene.
Over the past year, top acts such as Pulp, Coldplay, Katy Perry and Sheeran have all backed the trust in its initiatives to help venues survive, by adding a small levy to their ticket prices, which benefits smaller concert halls.
Fender also took part, generating over £100k on his 2024 arena tour to help thirty-eight small stages across the UK.
The donation assisted locations that were facing possible closure due to issues caused by floods, fires and personal losses, as well as regulatory hurdles, conflicts and noise complaints.
Some locations received monetary aid in upgrading infrastructure and sound and lighting systems that helped musicians and concertgoers.
"The notion that revenue from shows in large arenas helps the independent spots, where it kicks off for musicians like me, is just sensible," Fender has stated.
The musician is not the first artist to donate his Mercury Prize prize money to charitable organizations.
In they received the award in the mid-90s for their release their work, vocalist Jarvis Cocker stated that the group would donate their winnings to the non-profit the charity.
That year, rapper and singer the artist divided her prize between a few organizations, like the children's charity and a Sickle Cell charity.
"Additionally, I donated a grand to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was growing up and they required new equipment," she told the media.
Previously, Ezra Collective gave their prize money to the local youth club that nurtured their act, in addition to other grassroots music organisations.
Also the 1994 recipients M People contributed their prize to a charity for MS after a friend was identified with the disease.
"The victory was ample," said singer the singer. "The prize was the cherry on top but we didn't require the extra, because we had the cake. So our success touched another person's life."
Recently, the trust announced it had rescued two grassroots venues in that region, by bringing them into local control.
The Joiners in Southampton and The Croft in Bristol were purchased under the public acquisition initiative, which is backed by a national body and supporters who acquire "shares" in the venues.