The star has given the full amount of his £25,000 award winnings to the MVT, which operates to preserve the United Kingdom's small concert spaces.
He was given the prize on October 16 as his new release People Watching was named the top album of the previous year.
He has chosen to give the cash to the trust, in acknowledgment of the crucial part small stages had in his initial steps.
"I couldn't be pursuing what I am doing today if it hadn't been for all the gigs I played around the North East, and beyond, when I was just getting going," remarked Fender. "These venues are iconic, but they are in difficulty."
Since the start of 2023, over 150 of these spaces have ceased operations – approximately 16 percent of the whole industry in the UK.
Recently, well-known musicians including the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its initiatives to support the industry, by including a minor surcharge to their ticket prices, which supports local stages.
He also joined in, generating more than £100,000 on his recent tour to help 38 small stages across the UK.
These funds helped locations that were confronting possible closure due to difficulties caused by water damage, fires and family tragedies, as well as licensing issues, legal disputes and sound issues.
Additional spaces were granted funding support in upgrading infrastructure and sound and lighting systems that helped musicians and concertgoers.
"The notion that money from shows in major spaces backs the independent spots, where it all starts for musicians like me, is just logical," Sam Fender has commented.
Fender is far from the only musician to donate his Mercury Prize prize money to good deeds.
In the band earned the award in 1996 for their record their work, lead singer Jarvis Cocker announced that the band would contribute their prize money to the non-profit the charity.
That year, musician the artist divided her award among a few charities, including the NSPCC and a charity for Sickle Cell.
"Additionally, I gave a thousand pounds to the center, to their gymnastics program, because I practiced gymnastics when I was younger and they lacked updated gear," Ms Dynamite told outlets.
In recent years, they donated their funds to the community center that developed their band, as well as other independent music bodies.
Also the 1994 recipients they donated their award to a charity for MS after a acquaintance was found to have the disease.
"Winning was quite enough," stated singer Heather Small. "The prize was the bonus but we didn't need the extra, because we had the main prize. So our success impacted the lives of others."
Last week, the MVT announced it had saved two small stages in south-east England, by transferring them to community ownership.
The Joiners in that area and the second in Bristol were acquired under the public acquisition program, which is backed by a national body and music fans who purchase "ownership units" in the buildings.
