The star has given the complete sum of his twenty-five thousand pound award prize money to the Music Venues Trust, which functions to preserve the UK's small concert spaces.
He was presented with the cheque on October 16 as his new release People Watching was declared the top album of the previous year.
Fender has decided to donate the funds to the trust, in recognition of the crucial part grassroots venues had in his beginning days.
"I wouldn't be doing my current career if it weren't for all the gigs I played around the area, and elsewhere, when I was beginning," remarked Sam Fender. "These spaces are legendary, but they are in difficulty."
Beginning in 2023, over 150 of these spaces have ceased operations – roughly 16 percent of the entire UK sector.
Recently, top acts such as Pulp, Coldplay, Katy Perry and Sheeran have all supported the MVT in its attempts to support the industry, by applying a modest fee to their ticket prices, which benefits smaller concert halls.
He also joined in, generating in excess of £100,000 on his recent tour to assist 38 local spots across Britain.
The money assisted spaces that were facing potential shutdown due to challenges stemming from flooding, blazes and family tragedies, as well as regulatory hurdles, conflicts and neighbor objections.
Some locations were granted financial assistance in upgrading infrastructure and gear that directly benefitted musicians and audiences.
"The concept that funds from concerts in big venues helps the independent spots, where it all starts for artists like me, is just common sense," the star has commented.
He is not the first artist to give his Mercury Prize funds to charitable organizations.
Back when the band received the award in the year 1996 for their release their work, lead singer the singer announced that the band would donate their cash to the organization the charity.
During 2002, rapper and singer the artist divided her bounty between multiple good causes, like the NSPCC and a charity for Sickle Cell.
"I also gave a thousand pounds to Highgate Newtown, to their gymnastics program, because I trained in gymnastics when I was younger and they lacked new equipment," Ms Dynamite explained to outlets.
Previously, Ezra Collective donated their winnings to the local youth club that developed their band, alongside other grassroots music organisations.
Additionally the 1994 recipients M People gave their award to a charity for MS after a acquaintance was found to have the condition.
"The victory was quite enough," stated singer Heather Small. "The money was the cherry on top but we didn't need the cherry, because we had the main prize. So our winning affected another person's life."
Recently, the trust announced it had saved a couple of grassroots venues in south-east England, by bringing them into community ownership.
One venue in that area and the second in that location were acquired under the public acquisition program, which is funded by Arts Council England and supporters who buy "ownership units" in the buildings.
