The artist has given the entirety of his twenty-five thousand pound award prize money to the Music Venues Trust, which works to preserve the UK's grassroots concert spaces.
He was presented with the prize on 16 October as his third album the album was named the outstanding release of the last 12 months.
The musician has opted to give the cash to the Music Venues Trust, in recognition of the essential function local spots fulfilled in his early career.
"As an artist couldn't be pursuing this success if it hadn't been for all the shows I did around the North East, and further afield, when I was beginning," remarked Sam Fender. "These spaces are iconic, but they are facing challenges."
Since the start of 2023, more than 150 of these locations have shut down – roughly 16% of the whole industry in the UK.
Recently, top acts including the band Pulp, Coldplay, the singer Katy Perry and Sheeran have all backed the MVT in its efforts to keep the scene afloat, by including a modest fee to their ticket prices, which benefits local stages.
He also took part, generating over £100k on his live tour to assist numerous small stages across the UK.
These funds supported venues that were dealing with potential shutdown due to challenges stemming from water damage, blazes and personal losses, as well as licensing issues, conflicts and sound issues.
Some locations obtained funding support in improving facilities and gear that directly benefitted musicians and audiences.
"The concept that revenue from performances in large arenas backs the independent spots, where it all starts for artists like me, is just sensible," Sam Fender has said.
The musician is not the first artist to donate his Mercury Prize winnings to charitable organizations.
In they received the trophy in the year 1996 for their album Different Class, lead singer the singer stated that the band would contribute their prize money to the organization War Child.
During 2002, rapper and singer Ms Dynamite split her prize between several charities, such as the NSPCC and a Sickle Cell charity.
"Additionally, I donated a £1,000 to my local community centre, to their gymnastics class, because I trained in gymnastics when I was growing up and they needed updated gear," she explained to a publication.
In recent years, Ezra Collective gave their funds to the youth organization that nurtured their act, alongside other independent music bodies.
Additionally 1994 winners M People contributed their prize to a charity for MS after a close contact was diagnosed the illness.
"Receiving the award was sufficient," remarked singer the singer. "The prize was the bonus but we could do without the extra, because we had the cake. So our winning impacted another person's life."
Last week, the trust shared it had protected several local spots in south-east England, by placing them under local control.
The Joiners in the city and the other in the city were purchased under the community ownership program, which is funded by the arts council and supporters who purchase "shares" in the buildings.