The artist has given the entirety of his £25k honor prize money to the Music Venues Trust, which functions to protect the UK's independent music venues.
Fender was awarded the award on mid-October as his latest record his work was declared the outstanding release of the previous year.
Fender has decided to donate the funds to the MVT, in appreciation of the vital role grassroots venues had in his beginning days.
"As an artist couldn't be pursuing what I am doing today if it hadn't been for all the gigs I performed around the area, and beyond, when I was just getting going," stated Fender. "These locations are legendary, but they are in difficulty."
Beginning in 2023, at least 150 of these locations have ceased operations – roughly 16% of the entire UK sector.
Over the past year, well-known musicians such as Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the trust in its initiatives to keep the scene afloat, by adding a small levy to their admission fees, which benefits independent venues.
Fender also participated, collecting in excess of £100,000 on his recent tour to support numerous local spots across England, Scotland, and Wales.
These funds supported locations that were confronting possible closure due to challenges arising from flooding, fires and bereavements, as well as regulatory hurdles, conflicts and neighbor objections.
Other venues were granted monetary aid in upgrading infrastructure and gear that directly benefitted artists and concertgoers.
"The idea that money from performances in major spaces backs the local stages, where it begins for artists like me, is just logical," Sam Fender has said.
The musician is not the first artist to give his Mercury Prize winnings to charitable organizations.
In Pulp earned the award in the mid-90s for their release Different Class, frontman the singer announced that the band would give their prize money to the non-profit War Child.
During 2002, musician the artist shared her bounty among a few organizations, like the NSPCC and a Sickle Cell charity.
"I also contributed a grand to my local community centre, to their gymnastics class, because I trained in gymnastics when I was growing up and they required updated gear," Ms Dynamite explained to the media.
In recent years, they contributed their prize money to the youth organization that nurtured their band, alongside other grassroots music organisations.
And winners that year the group contributed their award to a charity for MS after a friend was identified with the disease.
"The victory was sufficient," said vocalist Small. "The prize was the extra but we didn't require the extra, because we had the cake. So our winning impacted another person's life."
Recently, the MVT shared it had rescued two grassroots venues in south-east England, by placing them under community ownership.
The first in that area and the second in the city were purchased under the community ownership scheme, which is backed by the arts council and supporters who buy "ownership units" in the properties.
