The star has given the entirety of his £25k honor winnings to the MVT, which operates to save the United Kingdom's grassroots live music spots.
He was presented with the award on 16 October as his third album People Watching was named the best record of the past year.
The musician has chosen to hand the money over to the MVT, in recognition of the crucial part grassroots venues had in his initial steps.
"I wouldn't be doing what I am doing today if it hadn't been for all the performances I performed around the North East, and further afield, when I was beginning," remarked Sam Fender. "These locations are iconic, but they are in difficulty."
Since the start of 2023, more than 150 of these locations have permanently closed – about 16% of the entire UK sector.
Over the past year, top acts like Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its efforts to keep the scene afloat, by including a minor surcharge to their admission fees, which supports independent venues.
Sam Fender also participated, generating more than £100,000 on his 2024 arena tour to help 38 local spots across England, Scotland, and Wales.
These funds supported locations that were confronting imminent closure due to issues caused by flooding, fires and bereavements, as well as regulatory hurdles, conflicts and sound issues.
Some locations obtained financial assistance in upgrading infrastructure and gear that directly benefitted musicians and concertgoers.
"The concept that revenue from performances in big venues supports the smaller venues, where it begins for performers like me, is just common sense," Sam Fender has said.
He is not the first artist to donate his Mercury Prize funds to worthy causes.
Back when Pulp earned the prize in the year 1996 for their record their work, vocalist the singer announced that the act would give their cash to the charity War Child.
In 2002, musician the artist divided her bounty among multiple organizations, including the children's charity and a Sickle Cell organization.
"I also contributed a grand to the center, to their gymnastics program, because I practiced gymnastics when I was younger and they lacked better apparatus," the artist explained to outlets.
In recent years, Ezra Collective gave their prize money to the youth organization that nurtured their band, as well as other independent music bodies.
Also the 1994 recipients the group donated their prize to a charity for MS after a acquaintance was identified with the disease.
"Winning was quite enough," said singer Heather Small. "The cash was the bonus but we didn't require the extra, because we had the honor. So our winning touched another person's life."
Last week, the MVT shared it had rescued two grassroots venues in south-east England, by placing them under community ownership.
The first in Southampton and the second in Bristol were bought under the community ownership scheme, which is backed by Arts Council England and enthusiasts who acquire "stakes" in the properties.
