The artist has handed over the entirety of his £25k honor cash to the Music Venues Trust, which functions to protect the UK's grassroots live music spots.
He was given the award on 16 October as his latest record his work was declared the best record of the last 12 months.
Fender has chosen to give the cash to the MVT, in recognition of the crucial part local spots fulfilled in his beginning days.
"As an artist wouldn't be doing this success if it hadn't been for all the performances I did around the region, and beyond, when I was just getting going," remarked the artist. "These venues are iconic, but they are struggling."
From early 2023 onward, over 150 of these spaces have shut down – approximately 16 percent of the total UK scene.
Recently, well-known musicians such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its efforts to help venues survive, by adding a modest fee to their ticket prices, which benefits smaller concert halls.
He also joined in, raising more than £100,000 on his live tour to support numerous small stages across England, Scotland, and Wales.
The donation assisted locations that were confronting possible closure due to challenges caused by flooding, fire incidents and bereavements, as well as regulatory hurdles, legal disputes and noise complaints.
Some locations received monetary aid in upgrading facilities and sound and lighting systems that directly benefitted performers and audiences.
"The concept that money from performances in big venues helps the independent spots, where it all starts for artists like me, is just logical," Sam Fender has stated.
Fender is not the first artist to give his Mercury Prize funds to good deeds.
In the band earned the trophy in the mid-90s for their record Different Class, vocalist Cocker stated that the group would contribute their winnings to the charity War Child.
In 2002, musician she split her prize among multiple organizations, like the NSPCC and a charity for Sickle Cell.
"I also contributed a grand to the center, to their gymnastics program, because I did gymnastics when I was growing up and they lacked better apparatus," she told the media.
Previously, they donated their funds to the community center that developed their group, in addition to other local music groups.
Also the 1994 recipients the group contributed their prize to a multiple sclerosis charity after a acquaintance was found to have the illness.
"Winning was ample," said vocalist Heather Small. "The cash was the bonus but we didn't need the extra, because we had the main prize. So our winning affected somebody else's life."
Recently, the trust revealed it had rescued two grassroots venues in the South East, by transferring them to public stewardship.
One venue in the city and the other in Bristol were bought under the community ownership scheme, which is backed by a national body and enthusiasts who acquire "ownership units" in the venues.
