The artist has donated the full amount of his £25,000 award winnings to the Music Venues Trust, which works to save the Britain's independent music venues.
Fender was given the award on October 16 as his third album People Watching was chosen as the best record of the previous year.
He has chosen to donate the funds to the Music Venues Trust, in recognition of the essential function grassroots venues fulfilled in his early career.
"I would not have achieved this success if it hadn't been for all the gigs I did around the North East, and elsewhere, when I was starting out," said Sam Fender. "These venues are legendary, but they are struggling."
From early 2023 onward, at least 150 of these spaces have permanently closed – roughly one-sixth of the total UK scene.
Recently, top acts like Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its attempts to support the industry, by applying a modest fee to their admission fees, which goes to help smaller concert halls.
Fender also joined in, raising more than £100,000 on his 2024 arena tour to help 38 grassroots venues across England, Scotland, and Wales.
These funds supported spaces that were facing imminent closure due to difficulties arising from floods, blazes and family tragedies, as well as licensing issues, conflicts and noise complaints.
Additional spaces were granted funding support in modernizing infrastructure and technical equipment that directly benefitted performers and fans.
"The notion that funds from shows in large arenas helps the smaller venues, where it begins for artists like me, is just sensible," Fender has stated.
The musician is far from the only musician to give his Mercury Prize winnings to worthy causes.
In Pulp won the trophy in 1996 for their record Different Class, frontman the singer declared that the group would donate their prize money to the charity War Child.
During 2002, musician the artist shared her bounty among multiple charities, including the NSPCC and a charity for Sickle Cell.
"And I gave a thousand pounds to my local community centre, to their classes, because I practiced gymnastics when I was younger and they required better apparatus," the artist shared with the media.
Previously, the band donated their funds to the local youth club that developed their band, alongside other grassroots music organisations.
Additionally 1994 winners they gave their prize to a charity for MS after a close contact was found to have the disease.
"Receiving the award was ample," said vocalist the singer. "The money was the bonus but we didn't require the extra, because we had the cake. So our winning affected another person's life."
Recently, the Music Venues Trust revealed it had saved two local spots in south-east England, by placing them under public stewardship.
One venue in the city and the other in the city were purchased under the community ownership scheme, which is supported by the arts council and music fans who acquire "shares" in the venues.
