The star has donated the entirety of his £25,000 honor cash to the MVT, which operates to save the Britain's grassroots concert spaces.
The star was awarded the cheque on 16 October as his new release People Watching was declared the top album of the previous year.
He has chosen to give the cash to the MVT, in acknowledgment of the crucial part grassroots venues played in his beginning days.
"I personally couldn't be pursuing my current career if it wasn't for all the gigs I played around the region, and beyond, when I was just getting going," said the artist. "These venues are legendary, but they are struggling."
From early 2023 onward, more than 150 of these venues have permanently closed – approximately 16 percent of the entire UK sector.
Recently, well-known musicians such as Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its initiatives to help venues survive, by including a small levy to their ticket costs, which supports local stages.
He also joined in, collecting over £100k on his recent tour to assist thirty-eight grassroots venues across Britain.
The money supported venues that were facing potential shutdown due to issues arising from water damage, fire incidents and bereavements, as well as licensing issues, legal disputes and sound issues.
Some locations received funding support in improving amenities and sound and lighting systems that helped performers and audiences.
"The notion that revenue from performances in major spaces supports the local stages, where it all starts for artists like me, is just common sense," Sam Fender has stated.
Fender is far from the only musician to donate his Mercury Prize winnings to worthy causes.
Back when they won the trophy in 1996 for their record their work, lead singer Jarvis Cocker announced that the act would contribute their winnings to the organization War Child.
That year, musician she split her prize among a few good causes, such as the children's charity and a Sickle Cell charity.
"I also gave a £1,000 to Highgate Newtown, to their classes, because I practiced gymnastics when I was growing up and they needed updated gear," Ms Dynamite told a publication.
In recent years, Ezra Collective gave their prize money to the local youth club that developed their act, in addition to other independent music bodies.
And 1994 winners the group gave their award to a charity for MS after a friend was diagnosed the illness.
"Winning was ample," stated vocalist Small. "The money was the extra but we didn't require the bonus, because we had the main prize. So our success affected the lives of others."
In the past week, the MVT shared it had rescued several grassroots venues in the South East, by transferring them to community ownership.
One venue in Southampton and the second in Bristol were purchased under the public acquisition program, which is supported by a national body and enthusiasts who purchase "shares" in the buildings.