The star has given the full amount of his twenty-five thousand pound award winnings to the MVT, which operates to preserve the UK's grassroots live music spots.
Fender was awarded the award on mid-October as his new release his work was declared the outstanding release of the previous year.
Fender has opted to hand the money over to the MVT, in acknowledgment of the crucial part grassroots venues played in his early career.
"I personally wouldn't be doing my current career if it wasn't for all the gigs I played around the region, and beyond, when I was starting out," remarked Fender. "These venues are iconic, but they are facing challenges."
Since the start of 2023, more than 150 of these spaces have ceased operations – about 16 percent of the entire UK sector.
Recently, major artists such as Pulp, Coldplay, Katy Perry and Sheeran have all backed the MVT in its attempts to keep the scene afloat, by applying a small levy to their ticket costs, which supports smaller concert halls.
Sam Fender also took part, generating in excess of £100,000 on his recent tour to assist 38 grassroots venues across England, Scotland, and Wales.
The donation supported locations that were dealing with potential shutdown due to issues caused by water damage, blazes and family tragedies, as well as permit problems, conflicts and sound issues.
Additional spaces were granted financial assistance in modernizing infrastructure and technical equipment that directly benefitted performers and concertgoers.
"The concept that revenue from concerts in major spaces supports the independent spots, where it kicks off for performers like me, is just common sense," the star has stated.
The musician is far from the only musician to donate his Mercury Prize winnings to worthy causes.
When the band won the trophy in the year 1996 for their record their work, vocalist the singer declared that the group would give their cash to the organization War Child.
In 2002, musician Ms Dynamite split her award among a few good causes, including the children's charity and a Sickle Cell charity.
"I also contributed a grand to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was younger and they required updated gear," the artist shared with a publication.
Previously, the band donated their prize money to the local youth club that developed their band, in addition to other independent music bodies.
And 1994 winners M People gave their prize to a MS organization after a friend was diagnosed the condition.
"Winning was sufficient," said singer Heather Small. "The cash was the bonus but we didn't require the extra, because we had the main prize. So our success affected somebody else's life."
Last week, the MVT revealed it had saved two local spots in the South East, by placing them under local control.
The Joiners in the city and The Croft in the city were purchased under the public acquisition scheme, which is supported by Arts Council England and music fans who acquire "shares" in the buildings.
