The artist has given the full amount of his £25,000 award prize money to the trust for venues, which operates to preserve the UK's grassroots concert spaces.
He was given the prize on October 16 as his third album his work was chosen as the outstanding release of the previous year.
He has opted to hand the money over to the Music Venues Trust, in appreciation of the vital role small stages fulfilled in his early career.
"I personally would not have achieved what I am doing today if it wasn't for all the gigs I did around the region, and elsewhere, when I was just getting going," said Fender. "These spaces are legendary, but they are facing challenges."
Beginning in 2023, more than 150 of these spaces have ceased operations – roughly 16 percent of the whole industry in the UK.
Recently, top acts such as Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the MVT in its initiatives to keep the scene afloat, by adding a modest fee to their admission fees, which goes to help local stages.
Sam Fender also took part, generating more than £100,000 on his recent tour to support numerous local spots across England, Scotland, and Wales.
The donation supported locations that were facing imminent closure due to issues arising from floods, fire incidents and family tragedies, as well as regulatory hurdles, legal disputes and sound issues.
Some locations were granted financial assistance in improving amenities and technical equipment that positively impacted artists and fans.
"The idea that revenue from concerts in big venues supports the local stages, where it begins for musicians like me, is just common sense," Fender has commented.
The musician is among several artists to donate his Mercury Prize funds to good deeds.
When they won the trophy in the year 1996 for their record the album, frontman the singer declared that the act would give their winnings to the organization War Child.
In 2002, musician the artist shared her prize between multiple charities, such as the NSPCC and a Sickle Cell charity.
"And I contributed a £1,000 to my local community centre, to their gymnastics class, because I practiced gymnastics when I was younger and they needed better apparatus," the artist told the media.
Previously, the band donated their winnings to the youth organization that nurtured their band, alongside other grassroots music organisations.
Additionally 1994 winners they gave their winnings to a charity for MS after a acquaintance was found to have the condition.
"Winning was ample," said vocalist Heather Small. "The prize was the bonus but we could do without the cherry, because we had the honor. So our winning affected the lives of others."
Last week, the trust shared it had protected several grassroots venues in the South East, by bringing them into public stewardship.
One venue in Southampton and the other in that location were purchased under the community ownership scheme, which is supported by the arts council and supporters who buy "ownership units" in the buildings.
