The artist has donated the entirety of his £25k award prize money to the Music Venues Trust, which works to protect the United Kingdom's small concert spaces.
He was awarded the award on mid-October as his new release People Watching was named the best record of the last 12 months.
He has opted to give the cash to the trust, in appreciation of the vital role local spots had in his early career.
"As an artist wouldn't be doing this success if it weren't for all the performances I did around the North East, and further afield, when I was starting out," remarked Fender. "These venues are legendary, but they are struggling."
Since the start of 2023, more than 150 of these venues have ceased operations – approximately one-sixth of the entire UK sector.
Over the past year, top acts like the band Pulp, Coldplay, Katy Perry and Sheeran have all aided the Music Venues Trust in its efforts to help venues survive, by including a minor surcharge to their ticket costs, which goes to help independent venues.
Sam Fender also participated, raising over £100k on his recent tour to assist 38 grassroots venues across the UK.
The donation assisted venues that were confronting imminent closure due to difficulties stemming from floods, fires and personal losses, as well as licensing issues, court cases and neighbor objections.
Additional spaces were granted financial assistance in modernizing infrastructure and gear that helped performers and fans.
"The concept that funds from concerts in big venues helps the smaller venues, where it kicks off for musicians like me, is just sensible," the star has commented.
He is far from the only musician to contribute his Mercury Prize prize money to good deeds.
In Pulp received the award in 1996 for their release the album, lead singer the singer announced that the group would donate their cash to the organization War Child.
That year, rapper and singer Ms Dynamite divided her prize across several charities, such as the NSPCC and a charity for Sickle Cell.
"Additionally, I gave a thousand pounds to the center, to their gymnastics class, because I trained in gymnastics when I was a child and they lacked new equipment," Ms Dynamite told outlets.
In recent years, the band gave their funds to the community center that nurtured their act, alongside other grassroots music organisations.
And the 1994 recipients the group gave their prize to a multiple sclerosis charity after a friend was identified with the illness.
"Receiving the award was sufficient," remarked singer the singer. "The money was the cherry on top but we didn't need the extra, because we had the cake. So our victory affected another person's life."
In the past week, the MVT announced it had rescued two local spots in that region, by placing them under local control.
The first in the city and The Croft in Bristol were purchased under the public acquisition program, which is funded by the arts council and music fans who acquire "ownership units" in the properties.
