The star has donated the full amount of his twenty-five thousand pound award winnings to the Music Venues Trust, which functions to protect the UK's grassroots concert spaces.
The star was presented with the cheque on 16 October as his new release his work was declared the top album of the last 12 months.
The musician has decided to donate the funds to the trust, in recognition of the crucial part grassroots venues had in his early career.
"As an artist couldn't be pursuing this success if it hadn't been for all the performances I performed around the North East, and elsewhere, when I was starting out," said Sam Fender. "These locations are iconic, but they are in difficulty."
Since the start of 2023, over 150 of these venues have ceased operations – roughly 16% of the total UK scene.
Over the past year, major artists such as the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its efforts to keep the scene afloat, by applying a modest fee to their ticket prices, which goes to help independent venues.
Sam Fender also joined in, generating more than £100,000 on his live tour to help thirty-eight grassroots venues across the UK.
These funds helped spaces that were facing potential shutdown due to difficulties stemming from water damage, fire incidents and family tragedies, as well as regulatory hurdles, conflicts and sound issues.
Other venues received monetary aid in upgrading facilities and gear that helped musicians and fans.
"The idea that revenue from shows in major spaces helps the smaller venues, where it begins for performers like me, is just sensible," the star has commented.
Fender is far from the only musician to contribute his Mercury Prize winnings to charitable organizations.
When Pulp won the prize in the year 1996 for their release the album, frontman Cocker stated that the act would give their prize money to the non-profit War Child.
That year, musician Ms Dynamite split her award among a few organizations, such as the NSPCC and a charity for Sickle Cell.
"Additionally, I gave a grand to the center, to their gymnastics program, because I did gymnastics when I was a child and they required better apparatus," she explained to a publication.
In recent years, they contributed their winnings to the local youth club that developed their act, alongside other local music groups.
Additionally 1994 winners they contributed their prize to a charity for MS after a friend was found to have the condition.
"The victory was quite enough," said artist Heather Small. "The cash was the extra but we could do without the cherry, because we had the cake. So our success touched another person's life."
Last week, the Music Venues Trust announced it had saved several local spots in the South East, by transferring them to community ownership.
One venue in the city and The Croft in that location were acquired under the community ownership scheme, which is funded by the arts council and enthusiasts who buy "shares" in the buildings.
