The artist has given the full amount of his £25,000 award winnings to the MVT, which operates to protect the United Kingdom's independent music venues.
He was given the prize on mid-October as his latest record the album was named the top album of the last 12 months.
Fender has chosen to give the cash to the Music Venues Trust, in appreciation of the vital role local spots had in his initial steps.
"I personally wouldn't be doing my current career if it wasn't for all the gigs I played around the area, and elsewhere, when I was starting out," stated Fender. "These spaces are legendary, but they are facing challenges."
Beginning in 2023, more than 150 of these locations have permanently closed – approximately 16 percent of the entire UK sector.
In the last year, well-known musicians including Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its initiatives to keep the scene afloat, by applying a modest fee to their ticket costs, which supports independent venues.
Sam Fender also participated, raising more than £100,000 on his 2024 arena tour to support thirty-eight small stages across Britain.
The donation helped locations that were dealing with imminent closure due to issues stemming from water damage, blazes and family tragedies, as well as licensing issues, legal disputes and neighbor objections.
Additional spaces obtained financial assistance in improving facilities and sound and lighting systems that directly benefitted musicians and audiences.
"The concept that revenue from shows in large arenas helps the independent spots, where it kicks off for musicians like me, is just sensible," the star has stated.
Fender is among several artists to contribute his Mercury Prize prize money to worthy causes.
Back when they earned the trophy in the year 1996 for their release their work, frontman Jarvis Cocker stated that the group would donate their winnings to the charity War Child.
In 2002, artist Ms Dynamite split her award among multiple organizations, like the NSPCC and a Sickle Cell charity.
"And I contributed a grand to the center, to their gymnastics class, because I did gymnastics when I was younger and they required new equipment," the artist told outlets.
In recent years, they donated their prize money to the local youth club that supported their group, alongside other independent music bodies.
Additionally the 1994 recipients M People contributed their award to a MS organization after a friend was diagnosed the disease.
"Winning was quite enough," stated artist the singer. "The money was the bonus but we didn't require the cherry, because we had the cake. So our winning impacted another person's life."
In the past week, the Music Venues Trust announced it had protected two local spots in the South East, by bringing them into public stewardship.
The first in the city and The Croft in that location were purchased under the Own Our Venues initiative, which is funded by a national body and enthusiasts who purchase "ownership units" in the properties.