The star has given the entirety of his £25,000 honor cash to the MVT, which operates to save the UK's independent music venues.
The star was awarded the prize on mid-October as his latest record his work was declared the top album of the past year.
The musician has chosen to hand the money over to the MVT, in recognition of the crucial part grassroots venues played in his beginning days.
"As an artist couldn't be pursuing what I am doing today if it weren't for all the performances I played around the area, and further afield, when I was beginning," said Sam Fender. "These spaces are renowned, but they are in difficulty."
From early 2023 onward, more than 150 of these locations have permanently closed – about 16 percent of the entire UK sector.
Over the past year, well-known musicians including Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its efforts to keep the scene afloat, by applying a minor surcharge to their ticket costs, which supports independent venues.
He also participated, raising in excess of £100,000 on his 2024 arena tour to support thirty-eight small stages across England, Scotland, and Wales.
The donation helped spaces that were dealing with potential shutdown due to issues stemming from flooding, blazes and personal losses, as well as licensing issues, conflicts and neighbor objections.
Additional spaces obtained monetary aid in modernizing infrastructure and technical equipment that helped musicians and fans.
"The idea that money from concerts in big venues helps the smaller venues, where it kicks off for performers like me, is just logical," the star has stated.
The musician is far from the only musician to give his Mercury Prize funds to charitable organizations.
Back when Pulp won the award in the year 1996 for their album their work, frontman Cocker stated that the act would contribute their cash to the non-profit War Child.
That year, rapper and singer she shared her prize across a few good causes, such as the NSPCC and a Sickle Cell organization.
"Additionally, I contributed a thousand pounds to Highgate Newtown, to their gymnastics class, because I practiced gymnastics when I was a child and they needed better apparatus," the artist explained to a publication.
Previously, Ezra Collective donated their funds to the youth organization that developed their band, as well as other local music groups.
And 1994 winners the group gave their award to a charity for MS after a friend was found to have the condition.
"The victory was quite enough," remarked vocalist Heather Small. "The prize was the bonus but we didn't need the bonus, because we had the cake. So our success affected the lives of others."
Recently, the MVT shared it had protected several grassroots venues in south-east England, by bringing them into public stewardship.
The first in the city and The Croft in Bristol were purchased under the community ownership scheme, which is supported by the arts council and enthusiasts who purchase "stakes" in the venues.