The star has donated the full amount of his twenty-five thousand pound award winnings to the Music Venues Trust, which works to save the United Kingdom's grassroots music venues.
Fender was awarded the prize on 16 October as his latest record his work was chosen as the outstanding release of the past year.
The musician has decided to donate the funds to the trust, in acknowledgment of the essential function small stages had in his initial steps.
"As an artist would not have achieved what I am doing today if it wasn't for all the gigs I performed around the North East, and beyond, when I was beginning," said Fender. "These locations are renowned, but they are in difficulty."
Beginning in 2023, more than 150 of these locations have ceased operations – approximately 16% of the whole industry in the UK.
In the last year, well-known musicians such as the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its attempts to help venues survive, by applying a modest fee to their admission fees, which benefits independent venues.
Sam Fender also joined in, raising in excess of £100,000 on his recent tour to assist thirty-eight small stages across the UK.
The donation assisted venues that were dealing with possible closure due to challenges arising from floods, blazes and family tragedies, as well as licensing issues, legal disputes and sound issues.
Other venues obtained monetary aid in upgrading amenities and technical equipment that directly benefitted musicians and fans.
"The idea that money from shows in large arenas helps the smaller venues, where it all starts for artists like me, is just sensible," Sam Fender has commented.
The musician is among several artists to contribute his Mercury Prize winnings to charitable organizations.
When the band received the trophy in 1996 for their record the album, frontman the singer announced that the act would contribute their cash to the charity War Child.
That year, rapper and singer the artist split her award across multiple organizations, including the children's charity and a Sickle Cell organization.
"Additionally, I donated a thousand pounds to Highgate Newtown, to their classes, because I did gymnastics when I was younger and they required better apparatus," Ms Dynamite shared with a publication.
Two years ago, they gave their winnings to the youth organization that nurtured their group, in addition to other local music groups.
Also winners that year they gave their winnings to a multiple sclerosis charity after a close contact was diagnosed the condition.
"Receiving the award was sufficient," remarked artist Heather Small. "The money was the bonus but we didn't need the bonus, because we had the main prize. So our success touched the lives of others."
In the past week, the MVT revealed it had rescued several grassroots venues in south-east England, by bringing them into local control.
One venue in the city and the second in the city were bought under the Own Our Venues initiative, which is funded by the arts council and music fans who acquire "shares" in the properties.
