The star has donated the full amount of his £25k honor winnings to the Music Venues Trust, which functions to protect the UK's small concert spaces.
He was given the cheque on 16 October as his third album the album was chosen as the best record of the previous year.
Fender has opted to donate the funds to the Music Venues Trust, in recognition of the crucial part grassroots venues had in his early career.
"I wouldn't be doing this success if it weren't for all the gigs I performed around the area, and elsewhere, when I was just getting going," remarked Sam Fender. "These locations are renowned, but they are struggling."
From early 2023 onward, at least 150 of these spaces have shut down – approximately one-sixth of the entire UK sector.
Recently, well-known musicians such as the band Pulp, Coldplay, the singer Katy Perry and Sheeran have all backed the Music Venues Trust in its attempts to support the industry, by applying a small levy to their ticket prices, which benefits local stages.
Fender also participated, raising more than £100,000 on his live tour to help numerous grassroots venues across the UK.
The donation supported venues that were dealing with potential shutdown due to challenges arising from floods, blazes and personal losses, as well as regulatory hurdles, legal disputes and sound issues.
Some locations obtained monetary aid in modernizing infrastructure and gear that directly benefitted performers and concertgoers.
"The notion that revenue from shows in large arenas supports the smaller venues, where it kicks off 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 the band won the award in 1996 for their release their work, vocalist Jarvis Cocker stated that the group would give their prize money to the non-profit the charity.
In 2002, musician the artist split her bounty across a few good causes, including the children's charity and a charity for Sickle Cell.
"I also contributed a £1,000 to the center, to their gymnastics program, because I did gymnastics when I was younger and they required better apparatus," she explained to outlets.
Two years ago, Ezra Collective contributed their funds to the local youth club that supported their group, as well as other independent music bodies.
Also 1994 winners they contributed their winnings to a multiple sclerosis charity after a acquaintance was diagnosed the illness.
"The victory was ample," remarked artist Heather Small. "The cash was the cherry on top but we didn't need the extra, because we had the main prize. So our victory impacted somebody else's life."
In the past week, the trust announced it had rescued several grassroots venues in the South East, by placing them under public stewardship.
The first in the city and the second in the city were purchased under the community ownership scheme, which is backed by Arts Council England and enthusiasts who acquire "stakes" in the buildings.