The star has donated the full amount of his twenty-five thousand pound award prize money to the MVT, which operates to protect the United Kingdom's independent concert spaces.
He was awarded the prize on October 16 as his latest record the album was chosen as the outstanding release of the previous year.
Fender has opted to donate the funds to the Music Venues Trust, in appreciation of the crucial part grassroots venues had in his initial steps.
"I personally couldn't be pursuing what I am doing today if it hadn't been for all the gigs I played around the North East, and beyond, when I was just getting going," stated Sam Fender. "These locations are renowned, but they are in difficulty."
Beginning in 2023, more than 150 of these spaces have permanently closed – approximately one-sixth of the total UK scene.
Recently, major artists including the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its initiatives to keep the scene afloat, by applying a small levy to their ticket costs, which benefits smaller concert halls.
He also took part, generating more than £100,000 on his recent tour to assist 38 local spots across the UK.
The money helped venues that were facing potential shutdown due to issues caused by flooding, blazes and bereavements, as well as regulatory hurdles, conflicts and sound issues.
Some locations received monetary aid in improving facilities and gear that directly benefitted artists and fans.
"The idea that money from concerts in major spaces backs the independent spots, where it begins for musicians like me, is just common sense," the star has said.
He is far from the only musician to contribute his Mercury Prize prize money to charitable organizations.
In they won the award in the mid-90s for their record Different Class, lead singer Cocker stated that the band would contribute their prize money to the charity the charity.
That year, rapper and singer she divided her prize across several good causes, like the children's charity and a Sickle Cell charity.
"Additionally, I donated a grand to Highgate Newtown, to their classes, because I trained in gymnastics when I was younger and they needed updated gear," the artist shared with the media.
Previously, the band gave their funds to the youth organization that developed their group, in addition to other local music groups.
And 1994 winners the group donated their winnings to a multiple sclerosis charity after a acquaintance was identified with the disease.
"Receiving the award was sufficient," remarked vocalist Heather Small. "The money was the extra but we didn't need the extra, because we had the honor. So our success impacted somebody else's life."
In the past week, the MVT announced it had saved two local spots in the South East, by transferring them to community ownership.
One venue in the city and The Croft in the city were purchased under the public acquisition program, which is backed by the arts council and enthusiasts who buy "ownership units" in the buildings.