The star has given the entirety of his £25,000 award prize money to the MVT, which operates to preserve the United Kingdom's grassroots concert spaces.
Fender was given the award on 16 October as his new release the album was chosen as the outstanding release of the past year.
Fender has chosen to give the cash to the Music Venues Trust, in acknowledgment of the essential function local spots played in his initial steps.
"As an artist wouldn't be doing this success if it hadn't been for all the shows I performed around the region, and beyond, when I was just getting going," remarked the artist. "These locations are iconic, but they are facing challenges."
Beginning in 2023, over 150 of these spaces have ceased operations – about one-sixth of the entire UK sector.
Over the past year, major artists including the band Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all supported the MVT in its attempts to help venues survive, by applying a minor surcharge to their ticket costs, which goes to help smaller concert halls.
Sam Fender also took part, collecting over £100k on his live tour to assist thirty-eight local spots across England, Scotland, and Wales.
These funds supported locations that were dealing with imminent closure due to difficulties caused by flooding, fire incidents and family tragedies, as well as regulatory hurdles, court cases and noise complaints.
Other venues were granted funding support in improving infrastructure and gear that helped musicians and concertgoers.
"The idea that money from shows in large arenas helps the local stages, where it all starts for performers like me, is just logical," Fender has said.
He is among several artists to donate his Mercury Prize prize money to charitable organizations.
Back when they earned the award in 1996 for their release Different Class, lead singer Cocker declared that the band would donate their winnings to the charity the charity.
In 2002, rapper and singer Ms Dynamite split her award between several good causes, like the children's charity and a Sickle Cell organization.
"And I gave a £1,000 to the center, to their gymnastics class, because I did gymnastics when I was a child and they lacked better apparatus," the artist shared with the media.
Previously, the band donated their winnings to the youth organization that developed their act, alongside other grassroots music organisations.
Also 1994 winners M People contributed their winnings to a MS organization after a friend was identified with the disease.
"Receiving the award was ample," said artist the singer. "The prize was the bonus but we didn't need the cherry, because we had the cake. So our victory impacted somebody else's life."
Last week, the MVT revealed it had rescued two local spots in the South East, by placing them under local control.
The Joiners in that area and the other in Bristol were purchased under the Own Our Venues program, which is supported by a national body and supporters who acquire "shares" in the venues.
