The artist has given the complete sum of his £25k honor cash to the MVT, which works to protect the United Kingdom's small music venues.
The star was presented with the prize on 16 October as his latest record his work was named the top album of the previous year.
The musician has chosen to give the cash to the trust, in acknowledgment of the crucial part small stages fulfilled in his initial steps.
"I wouldn't be doing what I am doing today if it weren't for all the gigs I performed around the region, and further afield, when I was beginning," said Sam Fender. "These spaces are iconic, but they are in difficulty."
Since the start of 2023, over 150 of these locations have shut down – about 16% of the whole industry in the UK.
In the last year, top acts including Pulp, Coldplay, Katy Perry and Sheeran have all supported the trust in its attempts to keep the scene afloat, by adding a modest fee to their admission fees, which benefits smaller concert halls.
He also joined in, raising more than £100,000 on his recent tour to assist numerous local spots across Britain.
The donation supported spaces that were dealing with possible closure due to difficulties stemming from water damage, fire incidents and personal losses, as well as regulatory hurdles, conflicts and sound issues.
Some locations received funding support in modernizing amenities and technical equipment that directly benefitted artists and fans.
"The idea that funds from performances in big venues helps the independent spots, where it kicks off for artists like me, is just sensible," Fender has commented.
He is far from the only musician to donate his Mercury Prize funds to good deeds.
In the band received the trophy in the year 1996 for their release their work, frontman Jarvis Cocker announced that the group would donate their winnings to the non-profit War Child.
During 2002, rapper and singer she split her bounty among several organizations, such as the NSPCC and a Sickle Cell charity.
"I also contributed a £1,000 to my local community centre, to their gymnastics class, because I practiced gymnastics when I was growing up and they lacked new equipment," the artist explained to the media.
Two years ago, they gave their prize money to the community center that supported their band, as well as other independent music bodies.
And 1994 winners the group donated their award to a MS organization after a acquaintance was diagnosed the condition.
"Receiving the award was quite enough," stated vocalist the singer. "The money was the cherry on top but we could do without the bonus, because we had the cake. So our victory touched somebody else's life."
Last week, the MVT shared it had protected several local spots in that region, by transferring them to local control.
The Joiners in that area and The Croft in that location were bought under the Own Our Venues scheme, which is funded by the arts council and enthusiasts who acquire "stakes" in the venues.