The artist has donated the complete sum of his £25k award cash to the Music Venues Trust, which operates to save the United Kingdom's independent music venues.
Fender was given the prize on 16 October as his third album his work was named the outstanding release of the previous year.
The musician has decided to hand the money over to the Music Venues Trust, in appreciation of the crucial part local spots fulfilled in his initial steps.
"I would not have achieved this success if it wasn't for all the gigs I played around the area, and elsewhere, when I was starting out," said Fender. "These spaces are iconic, but they are facing challenges."
Since the start of 2023, at least 150 of these locations have permanently closed – approximately one-sixth of the whole industry in the UK.
In the last year, major artists including Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all supported the MVT in its efforts to help venues survive, by applying a minor surcharge to their admission fees, which benefits local stages.
Sam Fender also participated, collecting over £100k on his 2024 arena tour to assist numerous small stages across England, Scotland, and Wales.
These funds assisted venues that were dealing with imminent closure due to difficulties arising from flooding, fire incidents and personal losses, as well as licensing issues, conflicts and neighbor objections.
Some locations were granted monetary aid in improving infrastructure and technical equipment that directly benefitted artists and audiences.
"The notion that revenue from concerts in major spaces supports the local stages, where it begins for musicians like me, is just common sense," the star has said.
He is among several artists to contribute his Mercury Prize funds to good deeds.
When they won the prize in the year 1996 for their album the album, lead singer Cocker stated that the group would donate their prize money to the organization War Child.
During 2002, rapper and singer Ms Dynamite divided her bounty across a few good causes, like the children's charity and a Sickle Cell organization.
"And I contributed a £1,000 to my local community centre, to their classes, because I trained in gymnastics when I was a child and they lacked updated gear," she shared with a publication.
Two years ago, they donated their funds to the community center that supported their act, as well as other grassroots music organisations.
Additionally the 1994 recipients M People gave their prize to a MS organization after a close contact was identified with the disease.
"Receiving the award was ample," said singer Small. "The cash was the extra but we could do without the bonus, because we had the honor. So our winning affected the lives of others."
Last week, the MVT revealed it had saved a couple of local spots in the South East, by bringing them into local control.
The first in that area and the other in that location were purchased under the community ownership scheme, which is backed by the arts council and supporters who acquire "ownership units" in the buildings.
