The artist has handed over the entirety of his £25,000 award winnings to the Music Venues Trust, which operates to protect the United Kingdom's grassroots music venues.
He was presented with the cheque on mid-October as his new release his work was named the best record of the previous year.
Fender has decided to donate the funds to the trust, in recognition of the crucial part grassroots venues played in his beginning days.
"I wouldn't be doing my current career if it wasn't for all the gigs I performed around the region, and elsewhere, when I was starting out," said Sam Fender. "These spaces are iconic, but they are in difficulty."
From early 2023 onward, over 150 of these spaces have ceased operations – roughly 16% of the total UK scene.
Over the past year, well-known musicians like Pulp, Coldplay, Katy Perry and Sheeran have all supported the Music Venues Trust in its initiatives to support the industry, by including a modest fee to their ticket prices, which benefits smaller concert halls.
Sam Fender also participated, generating over £100k on his recent tour to assist 38 grassroots venues across Britain.
The donation helped venues that were facing possible closure due to challenges arising from flooding, blazes and personal losses, as well as regulatory hurdles, court cases and neighbor objections.
Some locations obtained monetary aid in modernizing amenities and gear that directly benefitted musicians and audiences.
"The concept that revenue from concerts in large arenas supports the local stages, where it all starts for artists like me, is just common sense," Sam Fender has stated.
The musician is far from the only musician to give his Mercury Prize prize money to worthy causes.
When Pulp earned the prize in 1996 for their album Different Class, lead singer Cocker stated that the band would donate their winnings to the organization War Child.
During 2002, rapper and singer Ms Dynamite divided her prize across multiple good causes, like the NSPCC and a Sickle Cell charity.
"I also donated a thousand pounds to Highgate Newtown, to their gymnastics program, because I trained in gymnastics when I was growing up and they lacked new equipment," the artist explained to outlets.
In recent years, the band contributed their prize money to the youth organization that developed their group, alongside other independent music bodies.
Also winners that year they contributed their winnings to a MS organization after a friend was diagnosed the condition.
"The victory was sufficient," said artist the singer. "The money was the extra but we didn't need the extra, because we had the cake. So our winning touched somebody else's life."
Last week, the trust revealed it had rescued several grassroots venues in that region, by bringing them into public stewardship.
The first in that area and the other in that location were acquired under the community ownership program, which is supported by the arts council and music fans who buy "ownership units" in the venues.