The star has given the full amount of his £25,000 award prize money to the trust for venues, which operates to save the UK's small live music spots.
Fender was awarded the prize on 16 October as his new release People Watching was named the outstanding release of the previous year.
He has decided to hand the money over to the trust, in recognition of the essential function grassroots venues fulfilled in his early career.
"As an artist would not have achieved my current career if it hadn't been for all the gigs I did around the North East, and further afield, when I was beginning," remarked Sam Fender. "These spaces are iconic, but they are struggling."
Beginning in 2023, over 150 of these venues have ceased operations – about 16 percent of the whole industry in the UK.
In the last year, well-known musicians like the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all supported the trust in its attempts to keep the scene afloat, by including a small levy to their admission fees, which supports independent venues.
Sam Fender also joined in, raising in excess of £100,000 on his live tour to assist thirty-eight local spots across England, Scotland, and Wales.
The money helped venues that were facing imminent closure due to difficulties caused by flooding, blazes and bereavements, as well as permit problems, conflicts and sound issues.
Additional spaces obtained monetary aid in upgrading facilities and sound and lighting systems that directly benefitted performers and fans.
"The notion that funds from concerts in major spaces supports the local stages, where it kicks off for musicians like me, is just logical," Sam Fender has stated.
Fender is far from the only musician to give his Mercury Prize funds to charitable organizations.
In the band received the prize in the year 1996 for their record the album, frontman Jarvis Cocker stated that the group would give their cash to the organization the charity.
During 2002, rapper and singer the artist shared her award between a few charities, including the NSPCC and a Sickle Cell organization.
"And I donated a £1,000 to the center, to their gymnastics program, because I trained in gymnastics when I was a child and they required better apparatus," Ms Dynamite explained to a publication.
Two years ago, the band gave their winnings to the local youth club that nurtured their act, alongside other grassroots music organisations.
And the 1994 recipients they contributed their award to a MS organization after a acquaintance was diagnosed the disease.
"The victory was sufficient," stated vocalist Small. "The money was the bonus but we didn't need the cherry, because we had the main prize. So our success impacted another person's life."
Recently, the trust revealed it had saved two local spots in south-east England, by bringing them into community ownership.
The Joiners in that area and The Croft in Bristol were purchased under the Own Our Venues initiative, which is supported by a national body and music fans who purchase "ownership units" in the buildings.
