The star has given the complete sum of his £25k honor cash to the Music Venues Trust, which functions to protect the United Kingdom's grassroots live music spots.
He was presented with the prize on October 16 as his third album his work was chosen as the best record of the previous year.
He has decided to give the cash to the MVT, in appreciation of the essential function small stages played in his beginning days.
"As an artist would not have achieved what I am doing today if it weren't for all the performances I played around the region, and beyond, when I was beginning," remarked the artist. "These locations are renowned, but they are facing challenges."
Since the start of 2023, over 150 of these venues have ceased operations – approximately 16% of the total UK scene.
In the last year, major artists including Pulp, Coldplay, the singer Katy Perry and Sheeran have all aided the trust in its initiatives to keep the scene afloat, by applying a small levy to their ticket prices, which supports smaller concert halls.
He also joined in, collecting in excess of £100,000 on his 2024 arena tour to support numerous small stages across the UK.
The money helped venues that were confronting imminent closure due to issues caused by flooding, fires and bereavements, as well as permit problems, court cases and noise complaints.
Additional spaces received financial assistance in modernizing amenities and gear that positively impacted performers and fans.
"The idea that revenue from performances in large arenas backs the independent spots, where it begins for performers like me, is just common sense," Sam Fender has said.
Fender is not the first artist to donate his Mercury Prize winnings to charitable organizations.
When Pulp earned the prize in the year 1996 for their record the album, frontman the singer announced that the band would donate their cash to the non-profit the charity.
In 2002, artist Ms Dynamite divided her prize across multiple charities, such as the NSPCC and a Sickle Cell charity.
"And I gave a grand to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was growing up and they needed updated gear," she shared with a publication.
In recent years, the band contributed their funds to the local youth club that supported their band, in addition to other local music groups.
Also winners that year the group contributed their award to a charity for MS after a close contact was found to have the condition.
"The victory was quite enough," said singer the singer. "The prize was the cherry on top but we didn't need the cherry, because we had the cake. So our winning impacted somebody else's life."
Last week, the trust revealed it had protected a couple of local spots in south-east England, by placing them under community ownership.
The first in Southampton and the other in the city were purchased under the Own Our Venues program, which is backed by a national body and music fans who acquire "stakes" in the properties.
