The artist has handed over the full amount of his twenty-five thousand pound award winnings to the Music Venues Trust, which functions to save the UK's grassroots music venues.
The star was awarded the award on mid-October as his latest record the album was declared the best record of the past year.
He has opted to hand the money over to the trust, in appreciation of the vital role small stages had in his early career.
"I wouldn't be doing what I am doing today if it hadn't been for all the gigs I played around the North East, and further afield, when I was starting out," stated Sam Fender. "These spaces are legendary, but they are in difficulty."
Since the start of 2023, at least 150 of these locations have ceased operations – approximately one-sixth of the total UK scene.
Recently, well-known musicians including Pulp, Coldplay, Katy Perry and Sheeran have all aided the trust in its attempts to support the industry, by adding a small levy to their ticket costs, which supports independent venues.
He also took part, generating over £100k on his recent tour to help 38 small stages across England, Scotland, and Wales.
The money assisted spaces that were facing potential shutdown due to challenges arising from water damage, fire incidents and bereavements, as well as regulatory hurdles, legal disputes and sound issues.
Other venues were granted financial assistance in modernizing amenities and sound and lighting systems that positively impacted artists and fans.
"The concept that revenue from concerts in big venues helps the local stages, where it kicks off for performers like me, is just logical," Sam Fender has commented.
Fender is among several artists to donate his Mercury Prize winnings to worthy causes.
In they received the award in the mid-90s for their album Different Class, frontman Cocker declared that the band would donate their prize money to the non-profit War Child.
In 2002, rapper and singer the artist divided her prize among a few charities, like the NSPCC and a charity for Sickle Cell.
"I also donated a thousand pounds to my local community centre, to their gymnastics program, because I practiced gymnastics when I was younger and they lacked updated gear," Ms Dynamite explained to a publication.
Two years ago, the band donated their prize money to the local youth club that developed their act, in addition to other local music groups.
Also winners that year they gave their award to a MS organization after a acquaintance was identified with the illness.
"The victory was sufficient," said artist Heather Small. "The money was the cherry on top but we didn't need the cherry, because we had the honor. So our victory affected the lives of others."
Last week, the trust shared it had saved several local spots in the South East, by transferring them to community ownership.
The Joiners in that area and The Croft in Bristol were bought under the Own Our Venues scheme, which is funded by the arts council and enthusiasts who acquire "ownership units" in the venues.