The artist has handed over the full amount of his £25,000 award winnings to the Music Venues Trust, which operates to protect the Britain's independent concert spaces.
Fender was awarded the cheque on mid-October as his new release the album was named the top album of the last 12 months.
The musician has chosen to donate the funds to the trust, in appreciation of the crucial part grassroots venues had in his early career.
"I personally wouldn't be doing my current career if it hadn't been for all the gigs I did around the area, and elsewhere, when I was just getting going," said the artist. "These locations are legendary, but they are struggling."
Beginning in 2023, more than 150 of these locations have shut down – about 16 percent of the total UK scene.
Recently, well-known musicians such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its attempts to help venues survive, by applying a small levy to their admission fees, which goes to help smaller concert halls.
Fender also took part, generating in excess of £100,000 on his 2024 arena tour to assist numerous local spots across the UK.
The donation supported spaces that were facing imminent closure due to difficulties arising from water damage, blazes and personal losses, as well as regulatory hurdles, conflicts and noise complaints.
Additional spaces received monetary aid in upgrading amenities and gear that positively impacted artists and audiences.
"The idea that funds from concerts in major spaces helps the smaller venues, where it all starts for artists like me, is just logical," Sam Fender has commented.
He is not the first artist to give his Mercury Prize funds to good deeds.
When the band won the prize in the year 1996 for their release their work, vocalist Jarvis Cocker announced that the group would give their cash to the charity War Child.
In 2002, rapper and singer Ms Dynamite split her prize between several good causes, including the children's charity and a Sickle Cell organization.
"I also donated a grand to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was younger and they needed updated gear," the artist explained to outlets.
In recent years, Ezra Collective gave their winnings to the local youth club that nurtured their group, in addition to other independent music bodies.
And 1994 winners M People gave their prize to a MS organization after a acquaintance was found to have the illness.
"The victory was ample," remarked vocalist Heather Small. "The prize was the bonus but we could do without the cherry, because we had the cake. So our victory impacted the lives of others."
Recently, the MVT shared it had saved a couple of grassroots venues in south-east England, by placing them under public stewardship.
The first in the city and the other in that location were bought under the public acquisition program, which is funded by a national body and supporters who purchase "stakes" in the venues.
