The star has given the full amount of his £25k award cash to the MVT, which works to save the United Kingdom's independent concert spaces.
He was presented with the cheque on 16 October as his new release the album was declared the outstanding release of the previous year.
The musician has decided to give the cash to the Music Venues Trust, in appreciation of the essential function grassroots venues fulfilled in his early career.
"As an artist couldn't be pursuing my current career if it wasn't for all the performances I did around the region, and further afield, when I was just getting going," stated Sam Fender. "These spaces are legendary, but they are struggling."
From early 2023 onward, more than 150 of these spaces have shut down – about one-sixth of the total UK scene.
Recently, top acts such as the band Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all supported the MVT in its efforts to help venues survive, by adding a small levy to their ticket costs, which supports independent venues.
He also took part, collecting over £100k on his live tour to support 38 local spots across Britain.
The donation assisted venues that were confronting imminent closure due to challenges stemming from floods, blazes and personal losses, as well as regulatory hurdles, legal disputes and noise complaints.
Some locations were granted funding support in modernizing amenities and gear that directly benefitted musicians and concertgoers.
"The idea that money from shows in large arenas helps the smaller venues, where it all starts for performers like me, is just sensible," the star has stated.
The musician is far from the only musician to donate his Mercury Prize funds to good deeds.
Back when Pulp earned the award in 1996 for their record Different Class, lead singer the singer announced that the band would donate their cash to the non-profit the charity.
In 2002, artist Ms Dynamite split her bounty across a few charities, like the NSPCC and a Sickle Cell charity.
"Additionally, I contributed a thousand pounds to Highgate Newtown, to their gymnastics class, because I practiced gymnastics when I was younger and they lacked updated gear," she shared with outlets.
In recent years, Ezra Collective gave their prize money to the community center that nurtured their group, as well as other independent music bodies.
Also winners that year M People donated their award to a MS organization after a acquaintance was identified with the illness.
"Winning was sufficient," stated artist the singer. "The cash was the cherry on top but we didn't need the extra, because we had the main prize. So our success impacted somebody else's life."
Last week, the MVT revealed it had saved two small stages in south-east England, by bringing them into local control.
The Joiners in that area and the other in the city were bought under the Own Our Venues initiative, which is backed by the arts council and supporters who buy "ownership units" in the buildings.
