The artist has handed over the full amount of his £25,000 award prize money to the trust for venues, which operates to protect the United Kingdom's independent concert spaces.
The star was presented with the prize on October 16 as his new release People Watching was declared the top album of the last 12 months.
The musician has chosen to donate the funds to the Music Venues Trust, in recognition of the vital role grassroots venues had in his early career.
"As an artist couldn't be pursuing this success if it wasn't for all the performances I did around the area, and elsewhere, when I was just getting going," said the artist. "These spaces are iconic, but they are in difficulty."
Since the start of 2023, more than 150 of these spaces have permanently closed – approximately 16 percent of the entire UK sector.
In the last year, top acts like the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its initiatives to support the industry, by adding a minor surcharge to their admission fees, which goes to help independent venues.
Fender also took part, collecting over £100k on his 2024 arena tour to help thirty-eight grassroots venues across England, Scotland, and Wales.
The money helped spaces that were dealing with potential shutdown due to issues arising from flooding, blazes and family tragedies, as well as permit problems, court cases and sound issues.
Other venues obtained funding support in modernizing infrastructure and gear that helped artists and audiences.
"The notion that money from shows in large arenas supports the independent spots, where it kicks off for artists like me, is just logical," Sam Fender has said.
The musician is not the first artist to give his Mercury Prize winnings to good deeds.
When the band earned the trophy in 1996 for their release their work, lead singer Cocker announced that the band would donate their winnings to the charity War Child.
In 2002, artist Ms Dynamite split her bounty among a few organizations, such as the children's charity and a charity for Sickle Cell.
"And I donated a £1,000 to Highgate Newtown, to their classes, because I trained in gymnastics when I was growing up and they lacked updated gear," the artist told the media.
Previously, Ezra Collective gave their winnings to the community center that nurtured their band, alongside other grassroots music organisations.
Also winners that year M People donated their prize to a multiple sclerosis charity after a friend was identified with the disease.
"Winning was quite enough," remarked artist the singer. "The cash was the extra but we didn't need the bonus, because we had the honor. So our success affected the lives of others."
Last week, the trust announced it had saved two local spots in that region, by placing them under community ownership.
The Joiners in the city and the second in that location were acquired under the Own Our Venues program, which is supported by the arts council and music fans who buy "ownership units" in the buildings.