The artist has donated the complete sum of his twenty-five thousand pound honor cash to the trust for venues, which works to preserve the United Kingdom's small music venues.
He was awarded the award on mid-October as his new release People Watching was declared the top album of the past year.
He has decided to donate the funds to the trust, in acknowledgment of the crucial part small stages fulfilled in his beginning days.
"I would not have achieved what I am doing today if it hadn't been for all the gigs I did around the region, and further afield, when I was starting out," said Sam Fender. "These locations are renowned, but they are in difficulty."
Beginning in 2023, over 150 of these spaces have permanently closed – about 16 percent of the total UK scene.
Over the past year, top acts like the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its initiatives to keep the scene afloat, by including a minor surcharge to their admission fees, which supports smaller concert halls.
Sam Fender also participated, collecting more than £100,000 on his recent tour to support thirty-eight local spots across England, Scotland, and Wales.
The money assisted locations that were dealing with imminent closure due to difficulties caused by flooding, blazes and personal losses, as well as permit problems, court cases and noise complaints.
Other venues received monetary aid in modernizing infrastructure and technical equipment that positively impacted musicians and concertgoers.
"The idea that funds from concerts in big venues supports the local stages, where it kicks off for artists like me, is just logical," Sam Fender has said.
Fender is far from the only musician to contribute his Mercury Prize winnings to good deeds.
When the band earned the prize in the year 1996 for their record their work, vocalist Jarvis Cocker declared that the group would contribute their prize money to the non-profit the charity.
That year, musician Ms Dynamite shared her prize among a few organizations, like the children's charity and a Sickle Cell organization.
"I also donated a grand to Highgate Newtown, to their gymnastics program, because I trained in gymnastics when I was growing up and they needed updated gear," the artist explained to the media.
In recent years, they gave their prize money to the community center that developed their band, in addition to other local music groups.
Also the 1994 recipients the group gave their winnings to a MS organization after a acquaintance was identified with the disease.
"Winning was ample," remarked artist Heather Small. "The prize was the bonus but we could do without the bonus, because we had the main prize. So our success touched another person's life."
In the past week, the MVT revealed it had rescued two small stages in the South East, by transferring them to local control.
The first in that area and the other in Bristol were purchased under the public acquisition initiative, which is supported by the arts council and enthusiasts who buy "stakes" in the properties.