The artist has given the full amount of his twenty-five thousand pound award winnings to the trust for venues, which works to protect the United Kingdom's independent music venues.
The star was given the prize on October 16 as his third album his work was chosen as the outstanding release of the last 12 months.
Fender has decided to hand the money over to the Music Venues Trust, in recognition of the essential function small stages played in his early career.
"I couldn't be pursuing my current career if it hadn't been for all the performances I performed around the area, and further afield, when I was starting out," stated Fender. "These venues are legendary, but they are struggling."
Beginning in 2023, more than 150 of these spaces have permanently closed – about 16% of the total UK scene.
In the last year, major artists like the band Pulp, the group Coldplay, Katy Perry and Sheeran have all aided the Music Venues Trust in its initiatives to help venues survive, by adding a minor surcharge to their admission fees, which goes to help smaller concert halls.
Sam Fender also took part, collecting more than £100,000 on his live tour to support thirty-eight small stages across the UK.
These funds supported venues that were confronting possible closure due to issues stemming from flooding, fire incidents and personal losses, as well as licensing issues, conflicts and noise complaints.
Some locations were granted funding support in improving infrastructure and technical equipment that directly benefitted performers and fans.
"The idea that revenue from performances in major spaces supports the independent spots, where it all starts for artists like me, is just common sense," Sam Fender has commented.
The musician is not the first artist to contribute his Mercury Prize winnings to charitable organizations.
Back when they received the trophy in the year 1996 for their record their work, vocalist Cocker stated that the act would contribute their cash to the charity War Child.
During 2002, musician Ms Dynamite divided her bounty among a few good causes, including the NSPCC and a charity for Sickle Cell.
"And I gave a grand to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was growing up and they required better apparatus," she shared with the media.
Previously, they contributed their funds to the youth organization that supported their act, alongside other grassroots music organisations.
Additionally 1994 winners M People donated their winnings to a charity for MS after a close contact was diagnosed the condition.
"The victory was quite enough," remarked singer Heather Small. "The cash was the bonus but we could do without the cherry, because we had the cake. So our victory touched somebody else's life."
Recently, the trust revealed it had rescued a couple of small stages in the South East, by transferring them to local control.
One venue in the city and The Croft in that location were acquired under the public acquisition initiative, which is backed by a national body and enthusiasts who acquire "ownership units" in the venues.