The artist has donated the full amount of his £25k award winnings to the Music Venues Trust, which functions to preserve the United Kingdom's small concert spaces.
He was given the prize on 16 October as his new release People Watching was declared the best record of the past year.
The musician has opted to give the cash to the MVT, in recognition of the crucial part local spots had in his initial steps.
"As an artist couldn't be pursuing this success if it weren't for all the gigs I did around the area, and elsewhere, when I was beginning," stated Sam Fender. "These locations are renowned, but they are facing challenges."
Since the start of 2023, more than 150 of these venues have ceased operations – about 16% of the whole industry in the UK.
Over the past year, major artists like the band Pulp, Coldplay, Katy Perry and Sheeran have all supported the MVT in its efforts to keep the scene afloat, by applying a modest fee to their ticket costs, which supports local stages.
He also joined in, raising more than £100,000 on his 2024 arena tour to help 38 local spots across Britain.
The money helped venues that were confronting potential shutdown due to challenges caused by flooding, blazes and personal losses, as well as licensing issues, conflicts and sound issues.
Some locations obtained monetary aid in upgrading facilities and sound and lighting systems that directly benefitted artists and audiences.
"The idea that money from shows in big venues supports the smaller venues, where it kicks off for artists like me, is just logical," Sam Fender has commented.
The musician is not the first artist to give his Mercury Prize funds to good deeds.
When they won the award in 1996 for their release the album, frontman the singer declared that the act would give their cash to the non-profit War Child.
In 2002, rapper and singer she split her prize across multiple good causes, like the NSPCC and a Sickle Cell organization.
"I also contributed a grand to Highgate Newtown, to their classes, because I did gymnastics when I was a child and they lacked better apparatus," Ms Dynamite shared with the media.
In recent years, they donated their prize money to the local youth club that supported their group, alongside other independent music bodies.
And winners that year M People gave their winnings to a MS organization after a friend was identified with the disease.
"Winning was ample," remarked artist the singer. "The cash was the extra but we could do without the bonus, because we had the honor. So our winning touched the lives of others."
Last week, the MVT announced it had protected a couple of grassroots venues in south-east England, by bringing them into community ownership.
The first in the city and the other in Bristol were bought under the Own Our Venues scheme, which is backed by a national body and music fans who buy "stakes" in the properties.
