The star has donated the entirety of his £25k honor cash to the MVT, which functions to save the United Kingdom's independent concert spaces.
Fender was given the cheque on 16 October as his third album People Watching was declared the outstanding release of the past year.
He has chosen to give the cash to the Music Venues Trust, in recognition of the vital role grassroots venues played in his beginning days.
"I wouldn't be doing this success if it wasn't for all the gigs I performed around the region, and elsewhere, when I was just getting going," stated Fender. "These locations are legendary, but they are in difficulty."
From early 2023 onward, more than 150 of these spaces have shut down – about 16% of the whole industry in the UK.
In the last year, well-known musicians such as the band Pulp, Coldplay, Katy Perry and Sheeran have all aided the trust in its efforts to help venues survive, by applying a small levy to their ticket costs, which goes to help local stages.
Sam Fender also participated, raising in excess of £100,000 on his 2024 arena tour to help thirty-eight local spots across Britain.
The money helped venues that were dealing with potential shutdown due to challenges caused by floods, fire incidents and bereavements, as well as permit problems, legal disputes and noise complaints.
Some locations received financial assistance in modernizing amenities and technical equipment that helped artists and concertgoers.
"The concept that funds from performances in large arenas backs the local stages, where it begins for artists like me, is just logical," the star has said.
The musician is far from the only musician to give his Mercury Prize funds to worthy causes.
In the band earned the prize in the mid-90s for their album their work, vocalist the singer declared that the group would contribute their winnings to the organization War Child.
During 2002, rapper and singer Ms Dynamite divided her award among multiple charities, like the children's charity and a Sickle Cell charity.
"And I donated a grand to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was younger and they required updated gear," the artist explained to the media.
In recent years, the band gave their funds to the youth organization that supported their group, in addition to other local music groups.
And winners that year the group gave their winnings to a charity for MS after a acquaintance was found to have the disease.
"The victory was sufficient," stated singer Small. "The money was the bonus but we didn't require the extra, because we had the honor. So our success affected another person's life."
Recently, the Music Venues Trust shared it had protected several grassroots venues in that region, by bringing them into community ownership.
The Joiners in Southampton and The Croft in the city were purchased under the Own Our Venues initiative, which is funded by Arts Council England and enthusiasts who acquire "ownership units" in the venues.