The star has donated the entirety of his £25,000 award cash to the Music Venues Trust, which functions to preserve the United Kingdom's grassroots music venues.
He was given the prize on mid-October as his third album his work was declared the best record of the previous year.
He has opted to give the cash to the MVT, in acknowledgment of the crucial part local spots fulfilled in his early career.
"I would not have achieved this success if it wasn't for all the shows I played around the area, and elsewhere, when I was starting out," stated Sam Fender. "These spaces are renowned, but they are in difficulty."
From early 2023 onward, more than 150 of these spaces have permanently closed – about 16% of the entire UK sector.
Recently, major artists including the band Pulp, Coldplay, Katy Perry and Sheeran have all aided the Music Venues Trust in its initiatives to support the industry, by including a minor surcharge to their admission fees, which goes to help local stages.
He also joined in, generating more than £100,000 on his 2024 arena tour to assist thirty-eight small stages across England, Scotland, and Wales.
These funds helped spaces that were dealing with possible closure due to issues stemming from water damage, fires and family tragedies, as well as permit problems, conflicts and neighbor objections.
Some locations were granted monetary aid in upgrading amenities and sound and lighting systems that positively impacted musicians and audiences.
"The notion that money from shows in large arenas backs the smaller venues, where it begins for musicians like me, is just common sense," Sam Fender has commented.
He is far from the only musician to contribute his Mercury Prize winnings to good deeds.
In the band received the prize in the mid-90s for their record the album, lead singer Cocker declared that the act would contribute their cash to the non-profit the charity.
In 2002, musician Ms Dynamite divided her award among several organizations, such as the NSPCC and a Sickle Cell organization.
"I also gave a grand to Highgate Newtown, to their gymnastics class, because I trained in gymnastics when I was a child and they required better apparatus," the artist explained to a publication.
In recent years, they donated their winnings to the local youth club that supported their group, in addition to other local music groups.
Also the 1994 recipients they contributed their award to a charity for MS after a close contact was found to have the illness.
"Receiving the award was sufficient," stated artist Small. "The cash was the extra but we didn't require the bonus, because we had the cake. So our success touched somebody else's life."
Last week, the trust revealed it had rescued several small stages in south-east England, by transferring them to public stewardship.
The first in the city and the second in Bristol were acquired under the community ownership program, which is backed by Arts Council England and music fans who buy "ownership units" in the venues.