The star has donated the entirety of his £25,000 award cash to the MVT, which operates to protect the UK's small concert spaces.
Fender was given the cheque on mid-October as his new release the album was declared the top album of the last 12 months.
The musician has chosen to give the cash to the Music Venues Trust, in acknowledgment of the vital role grassroots venues played in his initial steps.
"As an artist couldn't be pursuing my current career if it wasn't for all the performances I performed around the area, and elsewhere, when I was beginning," remarked Sam Fender. "These locations are iconic, but they are in difficulty."
From early 2023 onward, more than 150 of these spaces have permanently closed – roughly 16% of the whole industry in the UK.
In the last year, major artists like Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its efforts to keep the scene afloat, by applying a small levy to their ticket costs, which benefits local stages.
He also joined in, collecting in excess of £100,000 on his live tour to support numerous grassroots venues across the UK.
The donation supported spaces that were facing potential shutdown due to issues arising from floods, fire incidents and family tragedies, as well as regulatory hurdles, legal disputes and noise complaints.
Additional spaces were granted financial assistance in upgrading facilities and technical equipment that helped artists and audiences.
"The notion that revenue from performances in major spaces backs the local stages, where it all starts for performers like me, is just logical," Sam Fender has stated.
He is far from the only musician to donate his Mercury Prize winnings to worthy causes.
Back when Pulp won the trophy in 1996 for their record Different Class, lead singer Jarvis Cocker declared that the act would give their winnings to the non-profit War Child.
In 2002, rapper and singer she shared her award among several organizations, including the children's charity and a Sickle Cell organization.
"Additionally, I contributed a £1,000 to Highgate Newtown, to their classes, because I practiced gymnastics when I was younger and they required better apparatus," Ms Dynamite explained to a publication.
Two years ago, they contributed their funds to the youth organization that developed their band, alongside other independent music bodies.
Also 1994 winners they contributed their award to a charity for MS after a acquaintance was found to have the condition.
"The victory was quite enough," stated singer Small. "The prize was the cherry on top but we didn't require the cherry, because we had the honor. So our victory affected the lives of others."
In the past week, the Music Venues Trust announced it had saved two local spots in the South East, by placing them under community ownership.
One venue in that area and the second in the city were purchased under the Own Our Venues program, which is backed by Arts Council England and enthusiasts who acquire "ownership units" in the properties.
