The star has given the entirety of his £25,000 award winnings to the MVT, which operates to protect the Britain's independent live music spots.
Fender was given the prize on 16 October as his latest record People Watching was declared the top album of the last 12 months.
He has chosen to donate the funds to the Music Venues Trust, in appreciation of the vital role grassroots venues fulfilled in his early career.
"As an artist would not have achieved this success if it weren't for all the gigs I played around the area, and elsewhere, when I was beginning," stated the artist. "These locations are iconic, but they are struggling."
Since the start of 2023, at least 150 of these spaces have permanently closed – about one-sixth of the whole industry in the UK.
Recently, well-known musicians like the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its initiatives to help venues survive, by including a small levy to their ticket prices, which supports independent venues.
Fender also participated, collecting in excess of £100,000 on his recent tour to assist thirty-eight grassroots venues across the UK.
These funds assisted spaces that were facing potential shutdown due to challenges arising from floods, blazes and personal losses, as well as regulatory hurdles, conflicts and sound issues.
Some locations received funding support in modernizing amenities and gear that directly benefitted musicians and fans.
"The idea that money from concerts in big venues helps the smaller venues, where it all starts for performers like me, is just common sense," Sam Fender has stated.
He is not the first artist to contribute his Mercury Prize funds to charitable organizations.
Back when they won the prize in the mid-90s for their album Different Class, lead singer the singer stated that the act would donate their winnings to the non-profit the charity.
During 2002, rapper and singer the artist split her award across multiple charities, like the children's charity and a charity for Sickle Cell.
"I also contributed a grand to Highgate Newtown, to their gymnastics class, because I practiced gymnastics when I was a child and they lacked new equipment," she told the media.
In recent years, they gave their funds to the community center that supported their group, alongside other independent music bodies.
Additionally the 1994 recipients M People contributed their award to a multiple sclerosis charity after a friend was diagnosed the disease.
"The victory was quite enough," stated artist Heather Small. "The money was the bonus but we didn't need the bonus, because we had the main prize. So our victory touched the lives of others."
Last week, the Music Venues Trust announced it had rescued several small stages in south-east England, by placing them under local control.
The first in the city and the second in the city were acquired under the community ownership initiative, which is funded by the arts council and supporters who buy "stakes" in the buildings.
