The star has handed over the entirety of his £25,000 award winnings to the MVT, which operates to save the United Kingdom's grassroots music venues.
Fender was awarded the prize on mid-October as his new release his work was chosen as the outstanding release of the past year.
The musician has decided to hand the money over to the Music Venues Trust, in appreciation of the vital role grassroots venues played in his beginning days.
"I personally couldn't be pursuing what I am doing today if it weren't for all the shows I did around the area, and further afield, when I was just getting going," said Sam Fender. "These venues are legendary, but they are struggling."
Since the start of 2023, over 150 of these spaces have ceased operations – approximately 16% of the whole industry in the UK.
Recently, major artists such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its efforts to support the industry, by including a minor surcharge to their ticket costs, which benefits independent venues.
He also joined in, generating over £100k on his recent tour to support 38 small stages across the UK.
The money supported spaces that were facing possible closure due to difficulties caused by floods, fire incidents and bereavements, as well as licensing issues, legal disputes and neighbor objections.
Some locations received financial assistance in modernizing infrastructure and sound and lighting systems that helped artists and fans.
"The notion that funds from performances in big venues supports the independent spots, where it kicks off for artists like me, is just logical," the star has said.
The musician is among several artists to give his Mercury Prize winnings to charitable organizations.
When the band received the award in 1996 for their album Different Class, lead singer the singer announced that the band would donate their cash to the charity the charity.
During 2002, musician she shared her award between several organizations, such as the NSPCC and a charity for Sickle Cell.
"And I contributed a thousand pounds to my local community centre, to their gymnastics program, because I did gymnastics when I was growing up and they lacked new equipment," the artist explained to outlets.
Previously, they contributed their winnings to the youth organization that developed their act, alongside other grassroots music organisations.
Also the 1994 recipients the group donated their award to a charity for MS after a friend was found to have the illness.
"Receiving the award was sufficient," remarked artist the singer. "The prize was the cherry on top but we didn't need the extra, because we had the honor. So our success touched another person's life."
Recently, the Music Venues Trust announced it had rescued several local spots in south-east England, by placing them under community ownership.
One venue in that area and the second in that location were acquired under the public acquisition scheme, which is backed by the arts council and supporters who acquire "stakes" in the properties.