The artist has donated the complete sum of his twenty-five thousand pound honor cash to the MVT, which operates to save the UK's grassroots concert spaces.
The star was given the prize on 16 October as his latest record the album was declared the top album of the last 12 months.
The musician has opted to donate the funds to the trust, in recognition of the essential function small stages fulfilled in his beginning days.
"I personally couldn't be pursuing what I am doing today if it weren't for all the performances I did around the region, and elsewhere, when I was beginning," said Sam Fender. "These spaces are legendary, but they are facing challenges."
From early 2023 onward, more than 150 of these venues have shut down – approximately one-sixth of the entire UK sector.
In the last year, top acts like the band Pulp, Coldplay, Katy Perry and Sheeran have all backed the Music Venues Trust in its efforts to help venues survive, by including a modest fee to their ticket costs, which supports local stages.
He also joined in, raising more than £100,000 on his live tour to assist 38 small stages across the UK.
The donation helped venues that were confronting imminent closure due to difficulties caused by water damage, fires and personal losses, as well as permit problems, court cases and neighbor objections.
Some locations were granted funding support in improving amenities and sound and lighting systems that positively impacted performers and audiences.
"The idea that revenue from shows in major spaces helps the smaller venues, where it all starts for musicians like me, is just logical," Sam Fender has commented.
Fender is far from the only musician to give his Mercury Prize winnings to charitable organizations.
In Pulp received the prize in the mid-90s for their album the album, frontman Cocker stated that the act would donate their winnings to the organization War Child.
In 2002, musician Ms Dynamite divided her award across multiple organizations, such as the children's charity and a Sickle Cell organization.
"I also donated a £1,000 to Highgate Newtown, to their classes, because I practiced gymnastics when I was younger and they lacked better apparatus," Ms Dynamite explained to the media.
Two years ago, the band donated their prize money to the youth organization that nurtured their group, in addition to other grassroots music organisations.
And 1994 winners the group gave their prize to a charity for MS after a acquaintance was found to have the illness.
"Winning was sufficient," stated singer the singer. "The cash was the cherry on top but we didn't need the cherry, because we had the honor. So our winning touched somebody else's life."
Last week, the trust revealed it had saved a couple of small stages in the South East, by placing them under local control.
The Joiners in that area and The Croft in that location were acquired under the public acquisition program, which is supported by the arts council and music fans who acquire "stakes" in the venues.