The artist has donated the entirety of his £25k honor winnings to the Music Venues Trust, which operates to preserve the United Kingdom's independent concert spaces.
The star was awarded the cheque on October 16 as his latest record the album was chosen as the best record of the last 12 months.
The musician has chosen to hand the money over to the Music Venues Trust, in acknowledgment of the essential function local spots had in his beginning days.
"I wouldn't be doing what I am doing today if it wasn't for all the performances I performed around the North East, and beyond, when I was beginning," said Sam Fender. "These spaces are legendary, but they are struggling."
From early 2023 onward, at least 150 of these venues have ceased operations – about 16 percent of the total UK scene.
Recently, top acts such as Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all backed the MVT in its initiatives to support the industry, by applying a small levy to their ticket costs, which supports local stages.
He also took part, raising more than £100,000 on his live tour to support thirty-eight small stages across the UK.
The donation assisted spaces that were dealing with potential shutdown due to difficulties arising from floods, blazes and personal losses, as well as permit problems, legal disputes and sound issues.
Other venues obtained funding support in upgrading infrastructure and gear that positively impacted artists and fans.
"The idea that money from shows in big venues backs the independent spots, where it begins for artists like me, is just logical," Fender has stated.
Fender is not the first artist to give his Mercury Prize prize money to good deeds.
In Pulp won the award in the mid-90s for their record the album, frontman Cocker announced that the group would contribute their cash to the charity the charity.
During 2002, artist Ms Dynamite divided her prize among multiple charities, including the children's charity and a charity for Sickle Cell.
"Additionally, I donated a grand to my local community centre, to their gymnastics program, because I did gymnastics when I was younger and they needed better apparatus," she explained to outlets.
Previously, they contributed their funds to the youth organization that developed their act, alongside other local music groups.
And the 1994 recipients M People gave their winnings to a charity for MS after a friend was diagnosed the illness.
"Winning was quite enough," remarked artist Heather Small. "The cash was the extra but we could do without the cherry, because we had the honor. So our success touched the lives of others."
In the past week, the MVT announced it had protected a couple of grassroots venues in that region, by transferring them to public stewardship.
The Joiners in the city and the other in Bristol were acquired under the Own Our Venues program, which is funded by Arts Council England and supporters who purchase "stakes" in the buildings.