The artist has given the complete sum of his £25,000 honor winnings to the trust for venues, which functions to save the Britain's small music venues.
He was given the prize on 16 October as his third album his work was chosen as the top album of the last 12 months.
The musician has chosen to give the cash to the trust, in acknowledgment of the vital role grassroots venues played in his beginning days.
"As an artist would not have achieved this success if it hadn't been for all the gigs I played around the area, and further afield, when I was beginning," remarked Sam Fender. "These venues are renowned, but they are struggling."
From early 2023 onward, at least 150 of these locations have ceased operations – approximately 16 percent of the total UK scene.
Recently, major artists such as the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its efforts to keep the scene afloat, by adding a modest fee to their ticket prices, which benefits local stages.
He also took part, raising in excess of £100,000 on his recent tour to help numerous grassroots venues across the UK.
The money helped venues that were confronting potential shutdown due to challenges stemming from floods, fires and bereavements, as well as permit problems, legal disputes and sound issues.
Some locations obtained funding support in improving facilities and sound and lighting systems that directly benefitted artists and audiences.
"The notion that revenue from shows in large arenas backs the local stages, where it kicks off for performers like me, is just common sense," the star has stated.
He is not the first artist to donate his Mercury Prize winnings to worthy causes.
Back when the band earned the award in the year 1996 for their album Different Class, lead singer Jarvis Cocker declared that the group would donate their winnings to the organization War Child.
That year, rapper and singer Ms Dynamite split her award between a few charities, such as the NSPCC and a charity for Sickle Cell.
"And I donated a £1,000 to my local community centre, to their gymnastics class, because I did gymnastics when I was a child and they needed better apparatus," Ms Dynamite shared with the media.
Previously, they contributed their winnings to the local youth club that nurtured their act, alongside other local music groups.
Also winners that year they gave their winnings to a MS organization after a friend was identified with the disease.
"Winning was ample," stated artist Heather Small. "The prize was the cherry on top but we didn't require the cherry, because we had the main prize. So our winning touched somebody else's life."
Recently, the trust announced it had saved several local spots in the South East, by transferring them to local control.
The first in Southampton and the other in that location were bought under the Own Our Venues scheme, which is funded by the arts council and enthusiasts who buy "ownership units" in the venues.