The star has handed over the full amount of his £25k honor prize money to the MVT, which operates to preserve the Britain's small live music spots.
The star was awarded the award on mid-October as his third album People Watching was named the outstanding release of the past year.
Fender has decided to give the cash to the Music Venues Trust, in acknowledgment of the essential function grassroots venues had in his initial steps.
"I personally wouldn't be doing this success if it weren't for all the performances I performed around the area, and beyond, when I was starting out," said Sam Fender. "These venues are iconic, but they are in difficulty."
Since the start of 2023, at least 150 of these venues have permanently closed – approximately 16% of the whole industry in the UK.
In the last year, well-known musicians including Pulp, Coldplay, Katy Perry and Sheeran have all aided the trust in its attempts to keep the scene afloat, by including a small levy to their admission fees, which benefits local stages.
Fender also participated, collecting more than £100,000 on his live tour to assist numerous small stages across the UK.
These funds supported venues that were facing possible closure due to difficulties caused by water damage, fires and family tragedies, as well as permit problems, legal disputes and noise complaints.
Some locations were granted funding support in improving amenities and gear that positively impacted performers and fans.
"The notion that money from performances in big venues helps the independent spots, where it begins for artists like me, is just common sense," Sam Fender has said.
He is among several artists to give his Mercury Prize winnings to good deeds.
Back when Pulp received the award in the year 1996 for their record their work, vocalist the singer announced that the group would give their cash to the non-profit War Child.
During 2002, musician Ms Dynamite shared her award between a few charities, such as the NSPCC and a Sickle Cell organization.
"And I contributed a £1,000 to the center, to their gymnastics class, because I did gymnastics when I was younger and they lacked new equipment," the artist told a publication.
Previously, Ezra Collective contributed their funds to the local youth club that supported their act, alongside other local music groups.
Additionally winners that year the group contributed their award to a MS organization after a acquaintance was found to have the illness.
"The victory was quite enough," stated artist Heather Small. "The prize was the extra but we didn't need the cherry, because we had the cake. So our success touched the lives of others."
Recently, the MVT shared it had saved two grassroots venues in the South East, by transferring them to local control.
The Joiners in the city and the second in Bristol were purchased under the Own Our Venues program, which is backed by a national body and music fans who buy "ownership units" in the buildings.
