The star has given the entirety of his twenty-five thousand pound honor prize money to the Music Venues Trust, which works to save the UK's grassroots music venues.
He was awarded the award on 16 October as his latest record the album was chosen as the best record of the previous year.
The musician has opted to hand the money over to the trust, in recognition of the vital role small stages had in his beginning days.
"I personally couldn't be pursuing what I am doing today if it wasn't for all the performances I played around the area, and elsewhere, when I was starting out," said Fender. "These spaces are iconic, but they are struggling."
From early 2023 onward, at least 150 of these venues have shut down – roughly 16% of the whole industry in the UK.
In the last year, top acts like Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all supported the MVT in its initiatives to help venues survive, by including a minor surcharge to their ticket prices, which goes to help local stages.
Fender also joined in, raising in excess of £100,000 on his live tour to help 38 small stages across Britain.
These funds helped locations that were facing possible closure due to challenges stemming from floods, fire incidents and personal losses, as well as licensing issues, legal disputes and neighbor objections.
Some locations were granted financial assistance in upgrading amenities and gear that helped musicians and fans.
"The concept that money from concerts in major spaces supports the local stages, where it begins for musicians like me, is just sensible," Sam Fender has commented.
The musician is among several artists to donate his Mercury Prize winnings to worthy causes.
In Pulp received the award in 1996 for their record Different Class, vocalist Cocker announced that the act would donate their cash to the non-profit the charity.
That year, musician the artist split her prize across multiple charities, including the NSPCC and a Sickle Cell charity.
"And I donated a thousand pounds to my local community centre, to their gymnastics class, because I practiced gymnastics when I was younger and they required new equipment," she shared with the media.
Two years ago, the band gave their prize money to the local youth club that nurtured their act, in addition to other grassroots music organisations.
Additionally winners that year M People donated their prize to a MS organization after a close contact was diagnosed the disease.
"Winning was ample," remarked vocalist the singer. "The money was the bonus but we didn't need the bonus, because we had the honor. So our success touched another person's life."
In the past week, the MVT revealed it had saved several local spots in the South East, by bringing them into public stewardship.
The Joiners in the city and the other in that location were purchased under the Own Our Venues initiative, which is backed by the arts council and music fans who acquire "shares" in the properties.