The star has handed over the complete sum of his £25k award winnings to the Music Venues Trust, which works to protect the Britain's small concert spaces.
Fender was given the prize on mid-October as his latest record the album was declared the outstanding release of the past year.
Fender has opted to donate the funds to the trust, in recognition of the crucial part grassroots venues played in his initial steps.
"I couldn't be pursuing my current career if it hadn't been for all the shows I performed around the region, and beyond, when I was starting out," said Sam Fender. "These locations are iconic, but they are facing challenges."
From early 2023 onward, at least 150 of these spaces have permanently closed – approximately one-sixth of the total UK scene.
Recently, major artists such as Pulp, Coldplay, Katy Perry and Sheeran have all aided the MVT in its efforts to support the industry, by applying a minor surcharge to their ticket costs, which goes to help independent venues.
He also took part, raising in excess of £100,000 on his recent tour to support numerous small stages across England, Scotland, and Wales.
The donation helped locations that were dealing with imminent closure due to issues caused by floods, fires and family tragedies, as well as licensing issues, conflicts and noise complaints.
Other venues were granted funding support in improving facilities and gear that positively impacted artists and concertgoers.
"The concept that money from performances in major spaces backs the smaller venues, where it kicks off for artists like me, is just logical," Fender has commented.
The musician is not the first artist to contribute his Mercury Prize prize money to worthy causes.
Back when they earned the trophy in 1996 for their release their work, lead singer Cocker announced that the act would give their winnings to the non-profit the charity.
In 2002, artist the artist divided her award between multiple good causes, such as the NSPCC and a Sickle Cell charity.
"And I gave a £1,000 to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was younger and they required updated gear," the artist explained to outlets.
Two years ago, they donated their winnings to the local youth club that developed their act, alongside other local music groups.
And the 1994 recipients M People contributed their prize to a multiple sclerosis charity after a acquaintance was found to have the condition.
"Winning was sufficient," said singer the singer. "The prize was the cherry on top but we didn't need the cherry, because we had the main prize. So our winning touched another person's life."
Last week, the Music Venues Trust announced it had protected several local spots in that region, by transferring them to community ownership.
One venue in Southampton and the second in the city were purchased under the public acquisition scheme, which is backed by Arts Council England and music fans who buy "shares" in the buildings.
