The artist has handed over the complete sum of his £25,000 award cash to the Music Venues Trust, which operates to save the Britain's grassroots concert spaces.
He was given the cheque on October 16 as his latest record his work was chosen as the top album of the last 12 months.
Fender has opted to hand the money over to the MVT, in recognition of the essential function small stages had in his beginning days.
"I wouldn't be doing what I am doing today if it wasn't for all the shows I did around the North East, and beyond, when I was just getting going," remarked Sam Fender. "These spaces are legendary, but they are struggling."
Since the start of 2023, at least 150 of these locations have shut down – approximately 16% of the total UK scene.
Recently, major artists including Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its initiatives to keep the scene afloat, by applying a small levy to their ticket costs, which benefits independent venues.
Sam Fender also participated, generating more than £100,000 on his live tour to help numerous local spots across Britain.
The money supported locations that were confronting imminent closure due to difficulties caused by floods, fire incidents and family tragedies, as well as permit problems, conflicts and noise complaints.
Some locations obtained financial assistance in modernizing facilities and technical equipment that directly benefitted musicians and audiences.
"The notion that funds from shows in large arenas backs the local stages, where it all starts for musicians like me, is just logical," Sam Fender has stated.
He is among several artists to give his Mercury Prize winnings to good deeds.
When they received the award in the year 1996 for their release their work, vocalist Jarvis Cocker declared that the band would donate their cash to the non-profit War Child.
During 2002, rapper and singer Ms Dynamite shared her bounty across several charities, like the NSPCC and a charity for Sickle Cell.
"And I donated a £1,000 to Highgate Newtown, to their classes, because I practiced gymnastics when I was a child and they lacked updated gear," she explained to the media.
In recent years, the band gave their winnings to the local youth club that developed their band, in addition to other grassroots music organisations.
And winners that year they donated their prize to a charity for MS after a acquaintance was diagnosed the illness.
"Receiving the award was quite enough," said singer Small. "The money was the bonus but we could do without the cherry, because we had the honor. So our success impacted another person's life."
In the past week, the MVT announced it had rescued several grassroots venues in that region, by transferring them to public stewardship.
One venue in that area and The Croft in Bristol were purchased under the Own Our Venues scheme, which is supported by the arts council and music fans who purchase "stakes" in the properties.
