The star has handed over the complete sum of his £25k award cash to the Music Venues Trust, which works to preserve the United Kingdom's independent concert spaces.
Fender was given the prize on October 16 as his latest record his work was named the top album of the last 12 months.
He has decided to donate the funds to the MVT, in recognition of the crucial part grassroots venues played in his initial steps.
"I personally would not have achieved this success if it weren't for all the performances I did around the region, and elsewhere, when I was just getting going," remarked the artist. "These venues are renowned, but they are facing challenges."
Beginning in 2023, at least 150 of these venues have permanently closed – roughly 16% of the entire UK sector.
Recently, top acts including the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its initiatives to help venues survive, by applying a modest fee to their ticket costs, which benefits independent venues.
Sam Fender also participated, generating more than £100,000 on his 2024 arena tour to help numerous small stages across Britain.
The donation supported venues that were facing possible closure due to difficulties stemming from floods, fire incidents and personal losses, as well as permit problems, conflicts and neighbor objections.
Some locations were granted financial assistance in improving infrastructure and technical equipment that positively impacted musicians and fans.
"The notion that money from concerts in large arenas supports the smaller venues, where it begins for artists like me, is just common sense," Fender has stated.
He is far from the only musician to contribute his Mercury Prize funds to charitable organizations.
In the band received the trophy in the mid-90s for their album Different Class, vocalist Jarvis Cocker announced that the act would give their winnings to the charity the charity.
In 2002, artist Ms Dynamite divided her bounty between multiple organizations, like the NSPCC and a charity for Sickle Cell.
"Additionally, I contributed a thousand pounds to the center, to their gymnastics program, because I practiced gymnastics when I was growing up and they needed new equipment," she told outlets.
Previously, they donated their winnings to the youth organization that developed their act, in addition to other local music groups.
Additionally winners that year M People contributed their award to a charity for MS after a friend was diagnosed the condition.
"Receiving the award was ample," stated vocalist Small. "The cash was the cherry on top but we didn't need the cherry, because we had the cake. So our victory affected the lives of others."
Last week, the Music Venues Trust announced it had saved a couple of grassroots venues in south-east England, by transferring them to public stewardship.
One venue in the city and the other in Bristol were bought under the Own Our Venues program, which is supported by Arts Council England and music fans who acquire "stakes" in the properties.