The artist has given the full amount of his £25k honor winnings to the Music Venues Trust, which functions to save the Britain's small concert spaces.
Fender was presented with the prize on 16 October as his third album the album was declared the top album of the last 12 months.
He has decided to hand the money over to the Music Venues Trust, in appreciation of the crucial part small stages played in his initial steps.
"I couldn't be pursuing this success if it weren't for all the shows I performed around the North East, and further afield, when I was beginning," stated Fender. "These venues are legendary, but they are struggling."
Since the start of 2023, over 150 of these spaces have ceased operations – roughly 16 percent of the entire UK sector.
Over the past year, top acts like Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the MVT in its initiatives to keep the scene afloat, by applying a small levy to their ticket costs, which supports local stages.
Sam Fender also joined in, raising over £100k on his 2024 arena tour to assist numerous small stages across England, Scotland, and Wales.
The donation assisted venues that were confronting possible closure due to issues stemming from flooding, fire incidents and personal losses, as well as permit problems, court cases and noise complaints.
Other venues received monetary aid in improving infrastructure and sound and lighting systems that helped musicians and audiences.
"The concept that revenue from concerts in big venues supports the independent spots, where it all starts for artists like me, is just logical," Fender has said.
The musician is not the first artist to donate his Mercury Prize prize money to good deeds.
Back when they won the prize in the year 1996 for their album their work, vocalist Jarvis Cocker declared that the group would donate their cash to the charity the charity.
In 2002, rapper and singer she split her prize among several organizations, such as the NSPCC and a Sickle Cell charity.
"I also contributed a thousand pounds to my local community centre, to their gymnastics class, because I did gymnastics when I was younger and they required new equipment," Ms Dynamite told outlets.
Previously, Ezra Collective donated their winnings to the community center that nurtured their band, in addition to other local music groups.
Additionally the 1994 recipients they donated their winnings to a MS organization after a friend was identified with the condition.
"Winning was quite enough," said singer Heather Small. "The prize was the extra but we didn't need the extra, because we had the main prize. So our victory touched somebody else's life."
In the past week, the Music Venues Trust shared it had protected two small stages in south-east England, by placing them under public stewardship.
The first in Southampton and the other in the city were acquired under the community ownership scheme, which is funded by Arts Council England and music fans who acquire "shares" in the venues.