The star has handed over the entirety of his twenty-five thousand pound award cash to the MVT, which works to protect the Britain's small live music spots.
He was presented with the award on 16 October as his third album the album was chosen as the best record of the last 12 months.
The musician has opted to give the cash to the trust, in acknowledgment of the vital role grassroots venues played in his early career.
"I wouldn't be doing my current career if it wasn't for all the shows I performed around the area, and further afield, when I was beginning," remarked Sam Fender. "These venues are renowned, but they are struggling."
Since the start of 2023, over 150 of these venues have shut down – roughly 16 percent of the total UK scene.
Over the past year, well-known musicians like the band Pulp, Coldplay, Katy Perry and Sheeran have all aided the Music Venues Trust in its attempts to help venues survive, by including a minor surcharge to their ticket prices, which supports local stages.
He also joined in, raising over £100k on his live tour to help thirty-eight small stages across Britain.
The donation supported locations that were facing potential shutdown due to issues arising from water damage, blazes and bereavements, as well as licensing issues, conflicts and neighbor objections.
Some locations obtained monetary aid in improving facilities and technical equipment that positively impacted performers and fans.
"The concept that funds from shows in major spaces backs the local stages, where it kicks off for musicians like me, is just common sense," Sam Fender has said.
He is among several artists to give his Mercury Prize winnings to worthy causes.
Back when the band earned the award in the mid-90s for their album the album, lead singer Jarvis Cocker stated that the group would donate their winnings to the non-profit the charity.
In 2002, musician she divided her award between a few good causes, including the NSPCC and a charity for Sickle Cell.
"I also contributed a £1,000 to my local community centre, to their gymnastics program, because I trained in gymnastics when I was a child and they required updated gear," the artist shared with the media.
Two years ago, they donated their prize money to the local youth club that supported their group, as well as other grassroots music organisations.
Also the 1994 recipients M People donated their prize to a MS organization after a close contact was identified with the condition.
"Receiving the award was quite enough," said vocalist the singer. "The money was the extra but we could do without the cherry, because we had the cake. So our victory affected another person's life."
In the past week, the MVT shared it had saved a couple of small stages in that region, by bringing them into local control.
The Joiners in that area and The Croft in the city were purchased under the public acquisition scheme, which is funded by Arts Council England and music fans who buy "ownership units" in the venues.