The artist has handed over the complete sum of his £25k award prize money to the trust for venues, which operates to preserve the Britain's independent music venues.
He was given the prize on 16 October as his new release People Watching was named the outstanding release of the previous year.
Fender has opted to hand the money over to the Music Venues Trust, in acknowledgment of the crucial part local spots had in his beginning days.
"As an artist couldn't be pursuing what I am doing today if it weren't for all the performances I played around the North East, and beyond, when I was just getting going," remarked Sam Fender. "These venues are legendary, but they are facing challenges."
From early 2023 onward, more than 150 of these spaces have shut down – approximately 16% of the whole industry in the UK.
In the last year, top acts such as Pulp, Coldplay, Katy Perry and Sheeran have all supported the Music Venues Trust in its initiatives to keep the scene afloat, by applying a minor surcharge to their admission fees, which supports smaller concert halls.
Fender also took part, generating more than £100,000 on his 2024 arena tour to support 38 local spots across Britain.
These funds helped spaces that were facing possible closure due to difficulties arising from floods, fires and personal losses, as well as licensing issues, legal disputes and sound issues.
Other venues received funding support in modernizing facilities and sound and lighting systems that helped performers and fans.
"The notion that revenue from concerts in big venues backs the smaller venues, where it begins for musicians like me, is just sensible," Sam Fender has commented.
He is not the first artist to donate his Mercury Prize funds to charitable organizations.
Back when Pulp earned the prize in the mid-90s for their album the album, lead singer Cocker declared that the act would contribute their prize money to the organization the charity.
That year, musician Ms Dynamite shared her award among a few good causes, including the NSPCC and a charity for Sickle Cell.
"Additionally, I donated a grand to my local community centre, to their classes, because I practiced gymnastics when I was a child and they lacked new equipment," the artist explained to the media.
In recent years, they donated their funds to the local youth club that supported their group, alongside other grassroots music organisations.
Also 1994 winners they gave their prize to a charity for MS after a acquaintance was found to have the illness.
"Receiving the award was ample," remarked vocalist the singer. "The money was the bonus but we didn't need the extra, because we had the cake. So our victory affected somebody else's life."
In the past week, the MVT shared it had protected several small stages in that region, by bringing them into local control.
The Joiners in the city and The Croft in Bristol were acquired under the Own Our Venues program, which is backed by the arts council and enthusiasts who buy "shares" in the properties.