The artist has donated the complete sum of his £25,000 award cash to the Music Venues Trust, which works to save the Britain's small live music spots.
He was presented with the prize on mid-October as his new release People Watching was chosen as the best record of the last 12 months.
The musician has decided to hand the money over to the Music Venues Trust, in acknowledgment of the crucial part local spots played in his beginning days.
"I personally couldn't be pursuing what I am doing today if it weren't for all the gigs I performed around the area, and further afield, when I was just getting going," remarked Sam Fender. "These spaces are renowned, but they are in difficulty."
Since the start of 2023, at least 150 of these locations have permanently closed – roughly 16 percent of the whole industry in the UK.
Recently, top acts like the band Pulp, Coldplay, Katy Perry and Sheeran have all backed the trust in its attempts to help venues survive, by applying a small levy to their ticket costs, which supports smaller concert halls.
Sam Fender also joined in, raising more than £100,000 on his 2024 arena tour to support thirty-eight grassroots venues across England, Scotland, and Wales.
These funds assisted spaces that were facing possible closure due to issues stemming from floods, blazes and personal losses, as well as regulatory hurdles, court cases and sound issues.
Additional spaces were granted financial assistance in upgrading facilities and gear that directly benefitted performers and audiences.
"The idea that money from concerts in big venues supports the local stages, where it all starts for artists like me, is just common sense," Sam Fender has commented.
Fender is among several artists to contribute his Mercury Prize winnings to charitable organizations.
Back when Pulp earned the prize in the year 1996 for their album Different Class, frontman the singer announced that the group would give their cash to the organization War Child.
In 2002, rapper and singer Ms Dynamite split her bounty between a few good causes, like the children's charity and a charity for Sickle Cell.
"Additionally, I contributed a thousand pounds to my local community centre, to their classes, because I practiced gymnastics when I was younger and they lacked new equipment," the artist shared with outlets.
Two years ago, the band contributed their winnings to the community center that supported their band, alongside other grassroots music organisations.
Also winners that year they donated their award to a charity for MS after a close contact was found to have the illness.
"Winning was ample," remarked singer Heather Small. "The cash was the extra but we didn't require the cherry, because we had the cake. So our success impacted the lives of others."
Recently, the Music Venues Trust shared it had protected two grassroots venues in that region, by bringing them into local control.
The first in that area and the other in Bristol were bought under the Own Our Venues initiative, which is backed by a national body and supporters who purchase "shares" in the buildings.
