The star has given the complete sum of his £25k honor prize money to the Music Venues Trust, which functions to protect the United Kingdom's independent concert spaces.
Fender was given the award on mid-October as his third album People Watching was chosen as the outstanding release of the last 12 months.
He has chosen to hand the money over to the MVT, in recognition of the crucial part small stages had in his beginning days.
"I wouldn't be doing this success if it hadn't been for all the shows I did around the North East, and further afield, when I was beginning," said the artist. "These venues are renowned, but they are facing challenges."
Since the start of 2023, more than 150 of these venues have permanently closed – roughly 16% of the total UK scene.
In the last year, well-known musicians such as the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its efforts to support the industry, by adding a modest fee to their ticket prices, which goes to help independent venues.
He also joined in, raising in excess of £100,000 on his 2024 arena tour to assist numerous small stages across Britain.
The money helped venues that were dealing with possible closure due to issues stemming from flooding, blazes and personal losses, as well as permit problems, conflicts and sound issues.
Some locations received funding support in improving amenities and gear that positively impacted musicians and fans.
"The concept that funds from concerts in big venues supports the local stages, where it all starts for musicians like me, is just sensible," Sam Fender has stated.
Fender is among several artists to give his Mercury Prize prize money to good deeds.
In the band received the award in the year 1996 for their release the album, vocalist the singer announced that the act would donate their winnings to the non-profit War Child.
In 2002, artist Ms Dynamite shared her bounty among a few organizations, including the children's charity and a Sickle Cell charity.
"And I contributed a thousand pounds to my local community centre, to their classes, because I practiced gymnastics when I was growing up and they needed updated gear," Ms Dynamite told outlets.
Two years ago, they donated their funds to the youth organization that supported their band, as well as other grassroots music organisations.
Also the 1994 recipients the group gave their prize to a MS organization after a friend was found to have the disease.
"Winning was sufficient," remarked vocalist Heather Small. "The money was the extra but we didn't need the cherry, because we had the main prize. So our victory impacted another person's life."
In the past week, the Music Venues Trust shared it had protected a couple of small stages in south-east England, by placing them under public stewardship.
The first in Southampton and The Croft in the city were acquired under the Own Our Venues initiative, which is funded by Arts Council England and supporters who acquire "ownership units" in the buildings.