The artist has given the full amount of his twenty-five thousand pound honor winnings to the MVT, which functions to preserve the UK's small concert spaces.
The star was given the prize on 16 October as his third album his work was declared the best record of the past year.
Fender has decided to give the cash to the Music Venues Trust, in recognition of the vital role small stages fulfilled in his beginning days.
"As an artist would not have achieved my current career if it hadn't been for all the gigs I played around the North East, and elsewhere, when I was just getting going," said Sam Fender. "These locations are renowned, but they are in difficulty."
Since the start of 2023, more than 150 of these spaces have permanently closed – approximately 16% of the whole industry in the UK.
Recently, major artists like the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the trust in its attempts to support the industry, by including a modest fee to their ticket prices, which benefits smaller concert halls.
Sam Fender also took part, raising in excess of £100,000 on his 2024 arena tour to help numerous local spots across Britain.
The donation supported spaces that were dealing with possible closure due to difficulties stemming from flooding, blazes and personal losses, as well as permit problems, court cases and sound issues.
Additional spaces received monetary aid in upgrading infrastructure and technical equipment that positively impacted musicians and concertgoers.
"The idea that funds from shows in large arenas supports the smaller venues, where it kicks off for musicians like me, is just logical," Fender has said.
He is far from the only musician to give his Mercury Prize funds to charitable organizations.
In Pulp earned the prize in 1996 for their record the album, lead singer Jarvis Cocker stated that the group would contribute their winnings to the non-profit the charity.
In 2002, musician Ms Dynamite shared her prize between several charities, such as the children's charity and a charity for Sickle Cell.
"And I gave a £1,000 to the center, to their gymnastics class, because I trained in gymnastics when I was a child and they required updated gear," she shared with the media.
Previously, they gave their winnings to the community center that developed their band, in addition to other grassroots music organisations.
Also 1994 winners M People contributed their winnings to a charity for MS after a acquaintance was identified with the disease.
"Winning was sufficient," remarked vocalist Heather Small. "The money was the extra but we didn't require the extra, because we had the cake. So our success touched somebody else's life."
Recently, the trust announced it had rescued a couple of small stages in the South East, by transferring them to community ownership.
One venue in that area and The Croft in that location were acquired under the Own Our Venues program, which is supported by Arts Council England and enthusiasts who acquire "ownership units" in the venues.