The star has given the complete sum of his £25,000 honor winnings to the Music Venues Trust, which functions to protect the Britain's independent concert spaces.
The star was presented with the award on mid-October as his latest record the album was chosen as the top album of the past year.
Fender has chosen to give the cash to the trust, in recognition of the vital role small stages fulfilled in his beginning days.
"As an artist would not have achieved my current career if it wasn't for all the shows I did around the North East, and further afield, when I was beginning," said Fender. "These locations are renowned, but they are facing challenges."
From early 2023 onward, over 150 of these locations have shut down – roughly 16 percent of the whole industry in the UK.
In the last year, major artists including Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its attempts to support the industry, by including a small levy to their admission fees, which benefits local stages.
Sam Fender also joined in, generating more than £100,000 on his live tour to assist 38 local spots across the UK.
The donation supported venues that were confronting imminent closure due to issues caused by floods, blazes and bereavements, as well as regulatory hurdles, court cases and noise complaints.
Additional spaces were granted financial assistance in modernizing infrastructure and sound and lighting systems that helped artists and concertgoers.
"The concept that revenue from shows in large arenas supports the smaller venues, where it all starts for performers like me, is just sensible," Fender has said.
Fender is among several artists to donate his Mercury Prize funds to worthy causes.
When Pulp won the trophy in the mid-90s for their record the album, vocalist Jarvis Cocker stated that the act would contribute their cash to the non-profit the charity.
During 2002, rapper and singer she divided her prize across multiple charities, including the NSPCC and a charity for Sickle Cell.
"I also contributed a grand to the center, to their classes, because I practiced gymnastics when I was younger and they lacked updated gear," she shared with outlets.
In recent years, the band donated their prize money to the community center that developed their act, in addition to other local music groups.
Additionally the 1994 recipients the group gave their prize to a charity for MS after a close contact was found to have the disease.
"The victory was quite enough," stated artist the singer. "The cash was the cherry on top but we didn't need the cherry, because we had the cake. So our success impacted the lives of others."
Last week, the MVT revealed it had protected two grassroots venues in the South East, by transferring them to local control.
The first in the city and the second in Bristol were bought under the public acquisition program, which is backed by a national body and enthusiasts who acquire "shares" in the properties.
