The star has given the full amount of his £25k honor cash to the MVT, which functions to preserve the UK's grassroots music venues.
He was given the cheque on 16 October as his third album his work was chosen as the top album of the last 12 months.
The musician has chosen to hand the money over to the MVT, in acknowledgment of the essential function grassroots venues fulfilled in his initial steps.
"I personally would not have achieved this success if it weren't for all the gigs I played around the area, and further afield, when I was beginning," said Sam Fender. "These venues are renowned, but they are struggling."
From early 2023 onward, more than 150 of these locations have permanently closed – about one-sixth of the whole industry in the UK.
Recently, major artists such as the band Pulp, Coldplay, the singer Katy Perry and Sheeran have all supported the trust in its attempts to keep the scene afloat, by applying a minor surcharge to their ticket prices, which supports independent venues.
Fender also took part, raising more than £100,000 on his 2024 arena tour to help numerous grassroots venues across Britain.
These funds helped venues that were confronting imminent closure due to challenges arising from water damage, fire incidents and family tragedies, as well as regulatory hurdles, legal disputes and sound issues.
Some locations received funding support in upgrading infrastructure and gear that helped performers and fans.
"The idea that money from performances in large arenas helps the smaller venues, where it begins for performers like me, is just common sense," the star has said.
He is among several artists to contribute his Mercury Prize funds to charitable organizations.
When the band earned the trophy in the mid-90s for their release Different Class, lead singer Cocker announced that the act would contribute their winnings to the organization War Child.
In 2002, rapper and singer the artist shared her bounty among multiple good causes, including the children's charity and a charity for Sickle Cell.
"And I contributed a thousand pounds to my local community centre, to their gymnastics class, because I practiced gymnastics when I was younger and they required new equipment," Ms Dynamite shared with outlets.
Previously, the band donated their prize money to the community center that developed their band, as well as other grassroots music organisations.
Additionally winners that year the group contributed their award to a MS organization after a close contact was found to have the disease.
"Winning was ample," said artist the singer. "The money was the cherry on top but we could do without the extra, because we had the main prize. So our victory affected somebody else's life."
Last week, the MVT revealed it had rescued two local spots in the South East, by bringing them into public stewardship.
One venue in the city and The Croft in the city were bought under the community ownership program, which is supported by a national body and supporters who buy "stakes" in the buildings.
