The star has donated the complete sum of his £25k award cash to the Music Venues Trust, which works to preserve the UK's small live music spots.
Fender was awarded the cheque on mid-October as his new release People Watching was declared the top album of the past year.
Fender has decided to hand the money over 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 what I am doing today if it wasn't for all the shows I played around the North East, and elsewhere, when I was just getting going," remarked Sam Fender. "These locations are renowned, but they are struggling."
From early 2023 onward, at least 150 of these locations have permanently closed – roughly 16% of the entire UK sector.
In the last year, major artists including Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its efforts to keep the scene afloat, by including a modest fee to their ticket prices, which goes to help local stages.
Fender also took part, collecting in excess of £100,000 on his recent tour to help 38 local spots across England, Scotland, and Wales.
The money assisted venues that were confronting potential shutdown due to challenges stemming from floods, blazes and family tragedies, as well as licensing issues, legal disputes and neighbor objections.
Additional spaces received financial assistance in upgrading amenities and technical equipment that positively impacted musicians and audiences.
"The concept that funds from shows in large arenas helps the smaller venues, where it all starts for performers like me, is just logical," Sam Fender has said.
The musician is not the first artist to give his Mercury Prize prize money to good deeds.
Back when the band earned the prize in the year 1996 for their record their work, lead singer the singer declared that the group would contribute their winnings to the organization War Child.
That year, musician Ms Dynamite shared her award among multiple good causes, like the children's charity and a Sickle Cell charity.
"I also gave a thousand pounds to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was growing up and they required new equipment," the artist explained to a publication.
In recent years, they gave their prize money to the local youth club that developed their band, alongside other grassroots music organisations.
Additionally the 1994 recipients M People donated their award to a charity for MS after a friend was found to have the condition.
"Receiving the award was sufficient," said artist Small. "The prize was the cherry on top but we didn't require the bonus, because we had the main prize. So our winning impacted another person's life."
Last week, the Music Venues Trust shared it had saved several local spots in the South East, by bringing them into local control.
The Joiners in the city and the other in that location were acquired under the public acquisition scheme, which is supported by Arts Council England and music fans who buy "ownership units" in the buildings.
