The star has given the complete sum of his £25k award winnings to the Music Venues Trust, which functions to preserve the UK's small concert spaces.
Fender was presented with the award on mid-October as his third album his work was chosen as the outstanding release of the previous year.
Fender has decided to donate the funds to the MVT, in appreciation of the vital role grassroots venues fulfilled in his beginning days.
"As an artist would not have achieved my current career if it wasn't for all the performances I did around the area, and beyond, when I was just getting going," said Fender. "These spaces are legendary, but they are in difficulty."
Beginning in 2023, more than 150 of these venues have shut down – roughly 16 percent of the total UK scene.
Over the past year, major artists including the band Pulp, the group Coldplay, Katy Perry and Sheeran have all backed the Music Venues Trust in its efforts to keep the scene afloat, by applying a modest fee to their ticket costs, which supports independent venues.
Fender also joined in, generating more than £100,000 on his recent tour to help 38 small stages across England, Scotland, and Wales.
The money assisted locations that were confronting potential shutdown due to challenges arising from flooding, fire incidents and family tragedies, as well as regulatory hurdles, court cases and noise complaints.
Other venues received monetary aid in modernizing facilities and technical equipment that directly benefitted performers and fans.
"The idea that money from performances in big venues helps the smaller venues, where it begins for performers like me, is just logical," Sam Fender has commented.
The musician is among several artists to donate his Mercury Prize prize money to charitable organizations.
Back when the band received the prize in the year 1996 for their release their work, frontman Jarvis Cocker announced that the band would donate their cash to the organization the charity.
In 2002, musician Ms Dynamite split her prize between a few organizations, including the NSPCC and a Sickle Cell charity.
"I also contributed a thousand pounds to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was a child and they needed better apparatus," she told the media.
Previously, the band gave their prize money to the local youth club that nurtured their band, as well as other local music groups.
Also 1994 winners they donated their prize to a MS organization after a friend was diagnosed the condition.
"Receiving the award was sufficient," stated artist Heather Small. "The prize was the cherry on top but we could do without the bonus, because we had the main prize. So our success impacted another person's life."
Last week, the trust revealed it had rescued a couple of grassroots venues in that region, by bringing them into local control.
The Joiners in that area and the second in the city were bought under the Own Our Venues scheme, which is supported by the arts council and music fans who purchase "ownership units" in the venues.
