The star has handed over the entirety of his £25,000 honor winnings to the Music Venues Trust, which functions to preserve the Britain's small live music spots.
Fender was given the prize on October 16 as his new release the album was named the best record of the previous year.
He has opted to donate the funds to the Music Venues Trust, in acknowledgment of the vital role small stages played in his initial steps.
"I couldn't be pursuing my current career if it weren't for all the performances I played around the North East, and beyond, when I was beginning," said the artist. "These venues are renowned, but they are struggling."
Since the start of 2023, more than 150 of these locations have shut down – about 16 percent of the whole industry in the UK.
Over the past year, well-known musicians including Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its initiatives to help venues survive, by applying a small levy to their ticket costs, which benefits smaller concert halls.
Sam Fender also took part, collecting in excess of £100,000 on his live tour to support numerous local spots across England, Scotland, and Wales.
The money helped spaces that were dealing with imminent closure due to difficulties arising from water damage, fires and family tragedies, as well as permit problems, conflicts and neighbor objections.
Other venues were granted funding support in upgrading facilities and gear that positively impacted performers and fans.
"The notion that revenue from shows in big venues helps the independent spots, where it begins for musicians like me, is just common sense," Sam Fender has said.
He is not the first artist to contribute his Mercury Prize prize money to worthy causes.
Back when the band earned the trophy in the mid-90s for their album their work, vocalist the singer stated that the act would donate their prize money to the charity the charity.
That year, rapper and singer Ms Dynamite shared her prize among a few organizations, like the NSPCC and a Sickle Cell charity.
"I also gave a £1,000 to the center, to their classes, because I did gymnastics when I was growing up and they needed updated gear," she told the media.
In recent years, the band contributed their funds to the local youth club that nurtured their band, alongside other grassroots music organisations.
Additionally the 1994 recipients they donated their award to a MS organization after a acquaintance was found to have the condition.
"Receiving the award was quite enough," stated artist Heather Small. "The cash was the bonus but we didn't need the cherry, because we had the cake. So our winning touched somebody else's life."
Last week, the Music Venues Trust revealed it had protected two small stages in that region, by transferring them to public stewardship.
One venue in the city and The Croft in that location were purchased under the community ownership scheme, which is funded by Arts Council England and music fans who buy "ownership units" in the properties.