The star has given the entirety of his £25,000 award prize money to the Music Venues Trust, which works to protect the UK's independent live music spots.
The star was given the cheque on 16 October as his latest record the album was chosen as the top album of the previous year.
He has opted to give the cash to the MVT, in recognition of the crucial part small stages fulfilled in his initial steps.
"I couldn't be pursuing my current career if it hadn't been for all the performances I played around the region, and further afield, when I was starting out," stated Fender. "These spaces are legendary, but they are struggling."
Since the start of 2023, more than 150 of these venues have permanently closed – roughly 16 percent of the total UK scene.
Over the past year, major artists such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its initiatives to support the industry, by applying a modest fee to their ticket prices, which benefits local stages.
Fender also participated, raising in excess of £100,000 on his 2024 arena tour to assist numerous local spots across the UK.
The money helped locations that were confronting possible closure due to difficulties caused by water damage, fires and personal losses, as well as regulatory hurdles, legal disputes and sound issues.
Additional spaces were granted funding support in upgrading facilities and sound and lighting systems that helped musicians and audiences.
"The idea that funds from concerts in major spaces supports the local stages, where it kicks off for artists like me, is just common sense," Sam Fender has said.
The musician is not the first artist to donate his Mercury Prize funds to good deeds.
In Pulp earned the award in the year 1996 for their record the album, frontman Cocker announced that the act would contribute their cash to the organization War Child.
In 2002, musician the artist split her prize among several charities, such as the children's charity and a Sickle Cell charity.
"And I donated a grand to the center, to their classes, because I did gymnastics when I was growing up and they needed new equipment," the artist shared with the media.
Previously, they gave their funds to the community center that supported their act, in addition to other grassroots music organisations.
And the 1994 recipients M People gave their winnings to a multiple sclerosis charity after a acquaintance was found to have the condition.
"Receiving the award was quite enough," remarked vocalist the singer. "The money was the extra but we didn't need the cherry, because we had the cake. So our victory impacted somebody else's life."
Recently, the Music Venues Trust announced it had saved two small stages in the South East, by placing them under community ownership.
The first in the city and the second in the city were purchased under the public acquisition program, which is backed by the arts council and enthusiasts who purchase "ownership units" in the buildings.
