The star has donated the complete sum of his £25,000 award cash to the Music Venues Trust, which operates to save the UK's grassroots music venues.
The star was awarded the cheque on 16 October as his third album his work was named the outstanding release of the last 12 months.
Fender has chosen to hand the money over to the MVT, in acknowledgment of the crucial part local spots had in his beginning days.
"As an artist wouldn't be doing my current career if it hadn't been for all the gigs I performed around the region, and further afield, when I was just getting going," remarked Sam Fender. "These locations are iconic, but they are struggling."
Beginning in 2023, more than 150 of these spaces have shut down – about 16% of the whole industry in the UK.
Over the past year, top acts like the band Pulp, the group Coldplay, the singer Katy Perry and Sheeran have all backed the Music Venues Trust in its attempts to help venues survive, by including a small levy to their ticket costs, which benefits independent venues.
He also participated, generating in excess of £100,000 on his live tour to help 38 local spots across the UK.
The donation assisted spaces that were confronting imminent closure due to challenges arising from flooding, fire incidents and bereavements, as well as licensing issues, legal disputes and noise complaints.
Some locations obtained funding support in modernizing infrastructure and technical equipment that positively impacted performers and concertgoers.
"The notion that funds from shows in major spaces helps the local stages, where it begins for artists like me, is just logical," the star has stated.
He is far from the only musician to give his Mercury Prize prize money to charitable organizations.
In Pulp won the award in 1996 for their album the album, vocalist the singer stated that the group would contribute their cash to the organization the charity.
That year, rapper and singer Ms Dynamite split her bounty across several organizations, including the children's charity and a charity for Sickle Cell.
"And I donated a £1,000 to my local community centre, to their classes, because I did gymnastics when I was younger and they needed updated gear," she told a publication.
Two years ago, the band donated their prize money to the community center that supported their act, in addition to other local music groups.
Additionally 1994 winners they gave their winnings to a charity for MS after a close contact was identified with the condition.
"The victory was quite enough," said vocalist Heather Small. "The cash was the extra but we didn't require the bonus, because we had the main prize. So our success impacted the lives of others."
Last week, the trust announced it had rescued a couple of grassroots venues in the South East, by transferring them to community ownership.
The Joiners in the city and the other in the city were bought under the Own Our Venues scheme, which is supported by a national body and enthusiasts who purchase "ownership units" in the buildings.
