The star has handed over the full amount of his £25,000 award cash to the Music Venues Trust, which works to protect the UK's grassroots concert spaces.
He was awarded the prize on mid-October as his third album his work was named the top album of the past year.
He has chosen to give the cash to the MVT, in appreciation of the crucial part local spots played in his beginning days.
"As an artist couldn't be pursuing what I am doing today if it hadn't been for all the performances I played around the region, and elsewhere, when I was starting out," stated Sam Fender. "These locations are renowned, but they are struggling."
From early 2023 onward, at least 150 of these venues have ceased operations – approximately 16% of the total UK scene.
Over the past year, well-known musicians such as the band Pulp, the group Coldplay, Katy Perry and Sheeran have all supported the trust in its initiatives to keep the scene afloat, by applying a small levy to their ticket costs, which goes to help local stages.
Sam Fender also took part, raising more than £100,000 on his 2024 arena tour to help numerous local spots across Britain.
The donation supported venues that were dealing with imminent closure due to issues stemming from water damage, fire incidents and personal losses, as well as licensing issues, conflicts and noise complaints.
Some locations obtained financial assistance in modernizing facilities and sound and lighting systems that helped musicians and fans.
"The concept that funds from concerts in large arenas supports the smaller venues, where it all starts for musicians like me, is just common sense," Fender has said.
Fender is not the first artist to contribute his Mercury Prize prize money to good deeds.
In Pulp won the trophy in the year 1996 for their release their work, vocalist Jarvis Cocker declared that the group would donate their winnings to the non-profit War Child.
During 2002, artist the artist shared her award among a few good causes, such as the children's charity and a Sickle Cell organization.
"I also contributed a £1,000 to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was a child and they needed updated gear," she shared with outlets.
Previously, they donated their funds to the community center that developed their band, in addition to other independent music bodies.
Additionally winners that year the group donated their award to a charity for MS after a acquaintance was found to have the condition.
"The victory was ample," remarked artist Small. "The prize was the cherry on top but we didn't require the extra, because we had the cake. So our success affected another person's life."
Last week, the Music Venues Trust announced it had saved several local spots in the South East, by bringing them into local control.
The Joiners in Southampton and the second in the city were purchased under the Own Our Venues program, which is funded by a national body and enthusiasts who buy "stakes" in the buildings.
