The artist has donated the full amount of his £25k award prize money to the Music Venues Trust, which operates to save the United Kingdom's grassroots concert spaces.
He was given the cheque on October 16 as his latest record People Watching was named the outstanding release of the last 12 months.
He has decided to give the cash to the trust, in recognition of the vital role small stages had in his early career.
"As an artist wouldn't be doing this success if it weren't for all the performances I did around the area, and elsewhere, when I was starting out," stated the artist. "These spaces are legendary, but they are facing challenges."
From early 2023 onward, over 150 of these spaces have ceased operations – approximately one-sixth of the total UK scene.
Recently, major artists such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its initiatives to support the industry, by including a minor surcharge to their ticket prices, which supports smaller concert halls.
He also participated, collecting over £100k on his live tour to support 38 local spots across the UK.
The donation supported venues that were confronting possible closure due to challenges caused by water damage, blazes and personal losses, as well as permit problems, court cases and neighbor objections.
Additional spaces received funding support in improving facilities and technical equipment that directly benefitted musicians and concertgoers.
"The idea that money from shows in large arenas helps the smaller venues, where it kicks off for artists like me, is just common sense," Sam Fender has commented.
Fender is not the first artist to contribute his Mercury Prize prize money to good deeds.
When they won the prize in the year 1996 for their record their work, frontman Cocker declared that the band would give their winnings to the organization War Child.
During 2002, artist she shared her prize between multiple organizations, such as the NSPCC and a Sickle Cell charity.
"Additionally, I donated a £1,000 to Highgate Newtown, to their gymnastics class, because I trained in gymnastics when I was a child and they required new equipment," Ms Dynamite explained to a publication.
Two years ago, Ezra Collective gave their funds to the community center that developed their band, as well as other grassroots music organisations.
Also 1994 winners they gave their award to a multiple sclerosis charity after a friend was found to have the condition.
"Winning was sufficient," said vocalist Small. "The prize was the extra but we didn't need the bonus, because we had the honor. So our victory touched somebody else's life."
Last week, the Music Venues Trust revealed it had protected several small stages in the South East, by transferring them to community ownership.
One venue in that area and the second in the city were purchased under the Own Our Venues initiative, which is supported by a national body and supporters who purchase "shares" in the venues.
