The star has donated the full amount of his £25,000 honor winnings to the Music Venues Trust, which works to preserve the Britain's small concert spaces.
Fender was awarded the prize on mid-October as his third album People Watching was named the outstanding release of the past year.
Fender has decided to give the cash to the trust, in appreciation of the vital role local spots played in his initial steps.
"I personally would not have achieved this success if it hadn't been for all the gigs I did around the North East, and beyond, when I was beginning," said Sam Fender. "These venues are legendary, but they are in difficulty."
From early 2023 onward, at least 150 of these venues have shut down – approximately 16 percent of the whole industry in the UK.
Recently, top acts like Pulp, Coldplay, the singer Katy Perry and Sheeran have all backed the trust in its initiatives to support the industry, by applying a small levy to their ticket costs, which goes to help independent venues.
He also participated, generating over £100k on his 2024 arena tour to help numerous small stages across the UK.
The money assisted spaces that were facing imminent closure due to difficulties arising from water damage, fire incidents and bereavements, as well as licensing issues, conflicts and sound issues.
Some locations obtained funding support in improving facilities and sound and lighting systems that directly benefitted artists and audiences.
"The idea that money from concerts in large arenas backs the independent spots, where it kicks off for performers like me, is just logical," Sam Fender has said.
He is far from the only musician to donate his Mercury Prize winnings to charitable organizations.
In Pulp earned the award in the year 1996 for their record Different Class, lead singer Jarvis Cocker stated that the band would contribute their prize money to the charity the charity.
During 2002, musician Ms Dynamite shared her award between multiple charities, such as the children's charity and a Sickle Cell organization.
"I also gave a grand to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was a child and they required new equipment," Ms Dynamite shared with outlets.
Previously, Ezra Collective gave their funds to the community center that nurtured their band, in addition to other grassroots music organisations.
And the 1994 recipients M People donated their award to a charity for MS after a close contact was diagnosed the disease.
"Winning was quite enough," said vocalist Small. "The cash was the bonus but we didn't need the extra, because we had the honor. So our success impacted another person's life."
Last week, the trust announced it had saved two local spots in the South East, by bringing them into public stewardship.
One venue in Southampton and the second in Bristol were acquired under the Own Our Venues initiative, which is supported by the arts council and supporters who purchase "stakes" in the properties.
