The artist has given the entirety of his £25k award cash to the MVT, which operates to save the United Kingdom's small concert spaces.
The star was awarded the cheque on 16 October as his third album the album was declared the outstanding release of the last 12 months.
Fender has decided to hand the money over to the Music Venues Trust, in recognition of the crucial part small stages played in his initial steps.
"As an artist couldn't be pursuing this success if it hadn't been for all the performances I performed around the area, and beyond, when I was starting out," stated Sam Fender. "These venues are renowned, but they are facing challenges."
Beginning in 2023, over 150 of these locations have shut down – approximately 16 percent of the whole industry in the UK.
Recently, top acts including Pulp, Coldplay, the singer Katy Perry and Sheeran have all supported the MVT in its efforts to keep the scene afloat, by including a small levy to their ticket costs, which goes to help independent venues.
Sam Fender also joined in, collecting in excess of £100,000 on his recent tour to support 38 grassroots venues across England, Scotland, and Wales.
These funds helped locations that were facing possible closure due to difficulties stemming from floods, blazes and family tragedies, as well as licensing issues, conflicts and noise complaints.
Some locations obtained funding support in improving infrastructure and sound and lighting systems that directly benefitted musicians and concertgoers.
"The idea that revenue from shows in big venues backs the local stages, where it kicks off for performers like me, is just sensible," the star has said.
Fender is far from the only musician to contribute his Mercury Prize prize money to good deeds.
In they won the prize in the mid-90s for their release their work, frontman the singer announced that the group would give their cash to the organization War Child.
That year, rapper and singer Ms Dynamite split her prize among several charities, such as the NSPCC and a Sickle Cell organization.
"I also donated a £1,000 to my local community centre, to their gymnastics program, because I practiced gymnastics when I was growing up and they needed better apparatus," she shared with the media.
Two years ago, Ezra Collective donated their winnings to the community center that nurtured their band, alongside other independent music bodies.
Additionally winners that year they donated their winnings to a charity for MS after a close contact was identified with the illness.
"The victory was sufficient," said artist Heather Small. "The cash was the cherry on top but we didn't need the bonus, because we had the main prize. So our success impacted another person's life."
Last week, the trust announced it had rescued several small stages in south-east England, by placing them under local control.
The Joiners in Southampton and the other in Bristol were purchased under the community ownership program, which is backed by the arts council and enthusiasts who purchase "ownership units" in the properties.
