The star has donated the complete sum of his £25k award winnings to the Music Venues Trust, which functions to protect the United Kingdom's grassroots music venues.
Fender was given the award on mid-October as his third album the album was declared the top album of the previous year.
The musician has chosen to give the cash to the MVT, in recognition of the vital role local spots played in his initial steps.
"I couldn't be pursuing my current career if it hadn't been for all the gigs I played around the North East, and further afield, when I was just getting going," said Sam Fender. "These venues are renowned, but they are in difficulty."
Beginning in 2023, over 150 of these spaces have permanently closed – approximately one-sixth of the whole industry in the UK.
Recently, major artists including Pulp, Coldplay, the singer Katy Perry and Sheeran have all backed the trust in its efforts to support the industry, by adding a modest fee to their ticket prices, which goes to help smaller concert halls.
Fender also joined in, collecting in excess of £100,000 on his 2024 arena tour to assist thirty-eight local spots across the UK.
The money supported spaces that were dealing with possible closure due to challenges stemming from flooding, blazes and family tragedies, as well as regulatory hurdles, court cases and neighbor objections.
Some locations were granted funding support in upgrading amenities and gear that directly benefitted performers and audiences.
"The idea that revenue from shows in big venues helps the local stages, where it all starts for performers like me, is just logical," the star has stated.
He is among several artists to give his Mercury Prize funds to good deeds.
When Pulp received the prize in 1996 for their record the album, vocalist Jarvis Cocker stated that the group would donate their cash to the charity War Child.
That year, musician Ms Dynamite shared her prize across multiple charities, like the NSPCC and a charity for Sickle Cell.
"Additionally, I donated a thousand pounds to the center, to their classes, because I trained in gymnastics when I was growing up and they needed better apparatus," Ms Dynamite shared with a publication.
In recent years, the band gave their prize money to the local youth club that developed their group, as well as other local music groups.
Additionally the 1994 recipients M People donated their award to a multiple sclerosis charity after a close contact was identified with the disease.
"Receiving the award was ample," remarked singer Small. "The money was the extra but we could do without the cherry, because we had the honor. So our winning impacted another person's life."
In the past week, the Music Venues Trust revealed it had saved a couple of small stages in that region, by bringing them into local control.
The first in Southampton and the other in Bristol were bought under the community ownership initiative, which is backed by Arts Council England and supporters who acquire "shares" in the properties.
