The artist has donated the full amount of his £25,000 honor prize money to the Music Venues Trust, which operates to protect the Britain's grassroots concert spaces.
Fender was presented with the cheque on October 16 as his new release his work was declared the best record of the past year.
Fender has decided to hand the money over to the trust, in appreciation of the essential function small stages fulfilled in his initial steps.
"I personally would not have achieved what I am doing today if it weren't for all the performances I performed around the region, and elsewhere, when I was just getting going," said the artist. "These locations are legendary, but they are facing challenges."
Since the start of 2023, at least 150 of these spaces have ceased operations – roughly 16 percent of the whole industry in the UK.
Over the past year, well-known musicians such as the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its initiatives to help venues survive, by adding a modest fee to their ticket prices, which benefits smaller concert halls.
Sam Fender also took part, collecting in excess of £100,000 on his 2024 arena tour to help numerous small stages across England, Scotland, and Wales.
The money assisted spaces that were facing possible closure due to issues stemming from flooding, fires and bereavements, as well as permit problems, court cases and sound issues.
Additional spaces obtained funding support in improving amenities and technical equipment that directly benefitted musicians and fans.
"The notion that revenue from performances in big venues helps the independent spots, where it all starts for musicians like me, is just common sense," the star has said.
The musician is not the first artist to donate his Mercury Prize funds to good deeds.
When the band won the prize in the year 1996 for their release their work, vocalist Cocker stated that the band would give their cash to the charity War Child.
During 2002, musician the artist split her bounty across several organizations, including the children's charity and a Sickle Cell organization.
"And I gave a thousand pounds to Highgate Newtown, to their classes, because I did gymnastics when I was younger and they required better apparatus," Ms Dynamite explained to outlets.
In recent years, they contributed their funds to the youth organization that supported their act, alongside other grassroots music organisations.
Additionally winners that year the group contributed their winnings to a multiple sclerosis charity after a close contact was identified with the illness.
"The victory was quite enough," stated vocalist Small. "The prize was the cherry on top but we didn't require the extra, because we had the main prize. So our victory impacted the lives of others."
Recently, the MVT shared it had protected two grassroots venues in south-east England, by placing them under local control.
One venue in that area and The Croft in the city were acquired under the public acquisition program, which is supported by a national body and music fans who buy "stakes" in the venues.