The artist has donated the entirety of his £25,000 award prize money to the Music Venues Trust, which works to preserve the Britain's small music venues.
He was awarded the prize on October 16 as his new release People Watching was chosen as the best record of the last 12 months.
He has decided to donate the funds to the MVT, in appreciation of the essential function local spots played in his beginning days.
"I couldn't be pursuing this success if it hadn't been for all the gigs I performed around the area, and beyond, when I was starting out," remarked Sam Fender. "These spaces are legendary, but they are in difficulty."
Beginning in 2023, at least 150 of these spaces have permanently closed – about one-sixth of the entire UK sector.
Over the past year, well-known musicians like Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its efforts to help venues survive, by including a modest fee to their admission fees, which supports independent venues.
Sam Fender also took part, collecting more than £100,000 on his recent tour to help numerous small stages across Britain.
The money helped venues that were facing possible closure due to challenges caused by floods, fires and personal losses, as well as licensing issues, legal disputes and sound issues.
Other venues were granted financial assistance in modernizing infrastructure and gear that positively impacted artists and fans.
"The idea that revenue from concerts in major spaces helps the local stages, where it begins for musicians like me, is just logical," Sam Fender has stated.
The musician is among several artists to contribute his Mercury Prize prize money to charitable organizations.
When Pulp received the award in the mid-90s for their record Different Class, frontman the singer announced that the act would give their prize money to the charity War Child.
During 2002, artist Ms Dynamite shared her award between a few organizations, including the children's charity and a charity for Sickle Cell.
"I also gave a £1,000 to my local community centre, to their gymnastics program, because I trained in gymnastics when I was a child and they required better apparatus," Ms Dynamite explained to a publication.
In recent years, the band gave their funds to the youth organization that developed their act, alongside other local music groups.
Additionally winners that year they donated their winnings to a charity for MS after a friend was diagnosed the disease.
"The victory was sufficient," remarked artist Heather Small. "The cash was the bonus but we didn't require the bonus, because we had the main prize. So our winning impacted somebody else's life."
In the past week, the trust shared it had protected two small stages in south-east England, by placing them under community ownership.
The Joiners in the city and The Croft in Bristol were bought under the Own Our Venues scheme, which is supported by a national body and music fans who buy "shares" in the venues.
