The star has given the entirety of his £25k award prize money to the Music Venues Trust, which works to protect the Britain's independent concert spaces.
Fender was awarded the award on 16 October as his new release People Watching was declared the outstanding release of the last 12 months.
He has chosen to give the cash to the MVT, in acknowledgment of the crucial part local spots played in his initial steps.
"I couldn't be pursuing my current career if it wasn't for all the shows I performed around the North East, and elsewhere, when I was starting out," remarked Sam Fender. "These locations are legendary, but they are struggling."
Since the start of 2023, at least 150 of these venues have ceased operations – about 16% of the total UK scene.
Over the past year, major artists including Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all backed the trust in its initiatives to keep the scene afloat, by applying a modest fee to their ticket costs, which supports local stages.
He also joined in, collecting in excess of £100,000 on his recent tour to assist numerous local spots across Britain.
These funds supported locations that were confronting possible closure due to issues stemming from water damage, blazes and family tragedies, as well as permit problems, court cases and sound issues.
Additional spaces were granted funding support in improving amenities and gear that directly benefitted performers and fans.
"The notion that money from shows in big venues backs the smaller venues, where it all starts for musicians like me, is just logical," Sam Fender has commented.
He is far from the only musician to contribute his Mercury Prize winnings to good deeds.
When Pulp won the prize in 1996 for their release Different Class, frontman Jarvis Cocker announced that the group would give their winnings to the charity War Child.
That year, rapper and singer the artist split her award between multiple organizations, such as the NSPCC and a charity for Sickle Cell.
"I also donated a £1,000 to my local community centre, to their gymnastics program, because I trained in gymnastics when I was younger and they lacked updated gear," the artist shared with outlets.
Two years ago, they donated their winnings to the community center that nurtured their group, in addition to other independent music bodies.
Also winners that year they donated their prize to a charity for MS after a friend was diagnosed the disease.
"Receiving the award was quite enough," stated singer Small. "The prize was the bonus but we could do without the extra, because we had the main prize. So our winning affected another person's life."
Last week, the Music Venues Trust announced it had saved two small stages in the South East, by transferring them to local control.
The Joiners in Southampton and The Croft in that location were bought under the public acquisition program, which is backed by Arts Council England and supporters who acquire "shares" in the properties.
