The star has given the full amount of his £25,000 award winnings to the Music Venues Trust, which works to protect the UK's independent live music spots.
Fender was presented with the prize on mid-October as his new release the album was declared the outstanding release of the last 12 months.
He has opted to donate the funds to the trust, in appreciation of the vital role local spots fulfilled in his initial steps.
"I personally wouldn't be doing this success if it hadn't been for all the gigs I played around the region, and beyond, when I was just getting going," remarked Sam Fender. "These spaces are legendary, but they are facing challenges."
From early 2023 onward, over 150 of these locations have ceased operations – approximately 16 percent of the total UK scene.
Over the past year, top acts like Pulp, Coldplay, Katy Perry and Sheeran have all supported the trust in its efforts to help venues survive, by applying a modest fee to their ticket prices, which benefits independent venues.
Fender also participated, raising over £100k on his live tour to support numerous local spots across England, Scotland, and Wales.
The money supported locations that were dealing with potential shutdown due to difficulties stemming from flooding, fires and bereavements, as well as licensing issues, conflicts and sound issues.
Additional spaces were granted monetary aid in modernizing infrastructure and sound and lighting systems that positively impacted performers and audiences.
"The idea that funds from performances in major spaces helps the local stages, where it begins for musicians like me, is just common sense," the star has stated.
He is far from the only musician to contribute his Mercury Prize prize money to good deeds.
When they won the prize in 1996 for their record the album, vocalist Cocker stated that the band would give their prize money to the charity War Child.
That year, rapper and singer Ms Dynamite divided her bounty among multiple good causes, like the NSPCC and a Sickle Cell charity.
"I also contributed a thousand pounds to Highgate Newtown, to their gymnastics class, because I trained in gymnastics when I was younger and they lacked better apparatus," the artist explained to a publication.
In recent years, they contributed their funds to the youth organization that nurtured their band, in addition to other independent music bodies.
Also winners that year M People contributed their prize to a multiple sclerosis charity after a friend was found to have the illness.
"Receiving the award was sufficient," remarked artist Small. "The prize was the extra but we didn't need the bonus, because we had the honor. So our victory touched another person's life."
In the past week, the trust announced it had rescued a couple of grassroots venues in that region, by placing them under public stewardship.
The Joiners in the city and The Croft in Bristol were acquired under the community ownership program, which is supported by the arts council and enthusiasts who purchase "shares" in the buildings.
