The star has given the entirety of his £25,000 award cash to the Music Venues Trust, which operates to save the United Kingdom's grassroots concert spaces.
He was presented with the prize on 16 October as his latest record his work was named the top album of the last 12 months.
He has decided to hand the money over to the MVT, in appreciation of the essential function small stages fulfilled in his beginning days.
"I couldn't be pursuing what I am doing today if it weren't for all the gigs I performed around the area, and beyond, when I was just getting going," stated Fender. "These venues are legendary, but they are facing challenges."
From early 2023 onward, at least 150 of these venues have ceased operations – roughly 16% of the whole industry in the UK.
Over the past year, top acts such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the trust in its efforts to support the industry, by adding a minor surcharge to their ticket costs, which supports smaller concert halls.
He also joined in, collecting in excess of £100,000 on his recent tour to assist 38 grassroots venues across Britain.
These funds supported spaces that were dealing with possible closure due to difficulties stemming from floods, fire incidents and bereavements, as well as permit problems, court cases and sound issues.
Other venues obtained funding support in modernizing amenities and gear that positively impacted musicians and audiences.
"The notion that funds from shows in big venues helps the independent spots, where it begins for artists like me, is just sensible," Sam Fender has commented.
The musician is far from the only musician to give his Mercury Prize funds to good deeds.
When they won the prize in 1996 for their record the album, frontman the singer declared that the act would give their winnings to the organization War Child.
That year, artist she divided her award between a few good causes, such as the children's charity and a Sickle Cell charity.
"And I gave a thousand pounds to my local community centre, to their gymnastics program, because I trained in gymnastics when I was younger and they needed better apparatus," Ms Dynamite explained to a publication.
Two years ago, Ezra Collective gave their funds to the youth organization that supported their group, in addition to other local music groups.
And winners that year M People gave their award to a MS organization after a close contact was identified with the illness.
"The victory was sufficient," said vocalist Small. "The money was the cherry on top but we didn't need the cherry, because we had the main prize. So our winning impacted the lives of others."
Recently, the MVT shared it had rescued several local spots in that region, by transferring them to local control.
The first in that area and the other in that location were purchased under the community ownership scheme, which is backed by Arts Council England and music fans who acquire "stakes" in the buildings.