The artist has given the entirety of his £25,000 honor prize money to the Music Venues Trust, which works to save the UK's small music venues.
Fender was awarded the cheque on 16 October as his new release People Watching was declared the top album of the past year.
The musician has decided to give the cash to the trust, in acknowledgment of the crucial part local spots fulfilled in his beginning days.
"I personally couldn't be pursuing my current career if it weren't for all the shows I played around the region, and further afield, when I was just getting going," stated Fender. "These locations are renowned, but they are facing challenges."
Beginning in 2023, over 150 of these spaces have ceased operations – roughly 16 percent of the entire UK sector.
Over the past year, major artists like Pulp, Coldplay, the singer Katy Perry and Sheeran have all supported the trust in its efforts to support the industry, by adding a small levy to their ticket costs, which supports local stages.
Sam Fender also joined in, collecting in excess of £100,000 on his live tour to support numerous local spots across the UK.
The money helped locations that were dealing with imminent closure due to issues arising from water damage, fires and bereavements, as well as permit problems, conflicts and noise complaints.
Additional spaces were granted financial assistance in modernizing facilities and sound and lighting systems that directly benefitted artists and audiences.
"The notion that funds from concerts in major spaces helps the independent spots, where it all starts for artists like me, is just logical," the star has commented.
The musician is among several artists to contribute his Mercury Prize winnings to worthy causes.
When the band won the prize in 1996 for their release their work, frontman Cocker announced that the group would give their cash to the organization War Child.
In 2002, musician she split her prize between a few charities, such as the NSPCC and a Sickle Cell organization.
"Additionally, I contributed a £1,000 to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was a child and they needed updated gear," she told outlets.
Two years ago, Ezra Collective contributed their funds to the community center that nurtured their band, in addition to other independent music bodies.
Also the 1994 recipients the group gave their award to a multiple sclerosis charity after a friend was diagnosed the disease.
"The victory was quite enough," remarked artist Small. "The money was the cherry on top but we didn't require the cherry, because we had the cake. So our winning touched another person's life."
Last week, the MVT revealed it had rescued a couple of small stages in that region, by transferring them to public stewardship.
One venue in the city and the second in the city were acquired under the public acquisition program, which is backed by the arts council and music fans who purchase "stakes" in the properties.