The star has donated the entirety of his £25,000 award winnings to the MVT, which works to preserve the Britain's small music venues.
The star was presented with the prize on mid-October as his third album his work was named the best record of the last 12 months.
The musician has decided to donate the funds to the MVT, in recognition of the crucial part grassroots venues played in his beginning days.
"I would not have achieved this success if it weren't for all the gigs I performed around the region, and beyond, when I was beginning," remarked Sam Fender. "These venues are renowned, but they are struggling."
Since the start of 2023, at least 150 of these spaces have permanently closed – approximately one-sixth of the total UK scene.
Over the past year, top acts like Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its efforts to help venues survive, by applying a modest fee to their ticket costs, which goes to help smaller concert halls.
Sam Fender also took part, collecting over £100k on his 2024 arena tour to assist 38 grassroots venues across Britain.
The donation helped spaces that were facing potential shutdown due to challenges stemming from floods, fires and personal losses, as well as regulatory hurdles, legal disputes and neighbor objections.
Additional spaces obtained monetary aid in improving amenities and technical equipment that directly benefitted performers and concertgoers.
"The concept that funds from concerts in big venues helps the local stages, where it all starts for performers like me, is just sensible," the star has stated.
He is far from the only musician to contribute his Mercury Prize prize money to good deeds.
In they received the prize in the year 1996 for their release Different Class, lead singer Cocker announced that the band would contribute their winnings to the charity War Child.
That year, rapper and singer Ms Dynamite divided her prize among a few charities, such as the children's charity and a Sickle Cell organization.
"Additionally, I contributed a grand to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was a child and they lacked better apparatus," the artist explained to the media.
Two years ago, Ezra Collective donated their funds to the community center that supported their group, as well as other independent music bodies.
Also 1994 winners they donated their winnings to a multiple sclerosis charity after a friend was identified with the disease.
"The victory was ample," remarked vocalist Small. "The cash was the cherry on top but we didn't require the bonus, because we had the main prize. So our victory affected somebody else's life."
Recently, the trust announced it had saved two grassroots venues in south-east England, by placing them under community ownership.
One venue in the city and the second in the city were bought under the public acquisition program, which is funded by Arts Council England and enthusiasts who buy "stakes" in the properties.