The star has given the full amount of his twenty-five thousand pound award prize money to the MVT, which functions to save the United Kingdom's grassroots concert spaces.
The star was awarded the award on mid-October as his third album the album was named the top album of the last 12 months.
He has decided to give the cash to the Music Venues Trust, in appreciation of the crucial part grassroots venues played in his beginning days.
"I personally couldn't be pursuing my current career if it wasn't for all the shows I performed around the region, and further afield, when I was starting out," said Sam Fender. "These venues are renowned, but they are in difficulty."
Beginning in 2023, at least 150 of these spaces have shut down – about one-sixth of the total UK scene.
Recently, top acts including the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its efforts to keep the scene afloat, by adding a minor surcharge to their admission fees, which supports local stages.
He also took part, raising in excess of £100,000 on his recent tour to support 38 small stages across the UK.
These funds assisted venues that were facing possible closure due to challenges stemming from floods, blazes and family tragedies, as well as regulatory hurdles, conflicts and noise complaints.
Other venues received monetary aid in improving facilities and gear that helped performers and concertgoers.
"The idea that revenue from shows in big venues helps the independent spots, where it all starts for musicians like me, is just logical," Sam Fender has commented.
The musician is among several artists to donate his Mercury Prize prize money to worthy causes.
In they won the award in the year 1996 for their record Different Class, frontman Jarvis Cocker stated that the act would contribute their cash to the non-profit the charity.
During 2002, musician the artist divided her award among a few good causes, including the NSPCC and a Sickle Cell organization.
"Additionally, I gave a thousand pounds to my local community centre, to their gymnastics class, because I practiced gymnastics when I was younger and they needed better apparatus," the artist explained to outlets.
Two years ago, the band donated their winnings to the community center that supported their act, as well as other grassroots music organisations.
And 1994 winners the group gave their prize to a multiple sclerosis charity after a close contact was identified with the illness.
"The victory was quite enough," remarked artist Small. "The money was the cherry on top but we could do without the bonus, because we had the honor. So our victory affected somebody else's life."
In the past week, the Music Venues Trust revealed it had saved several small stages in south-east England, by transferring them to local control.
The first in the city and the second in the city were purchased under the community ownership scheme, which is funded by the arts council and music fans who buy "ownership units" in the buildings.