The artist has handed over the complete sum of his £25k honor cash to the Music Venues Trust, which works to save the UK's grassroots concert spaces.
Fender was awarded the prize on October 16 as his third album his work was chosen as the outstanding release of the past year.
He has opted to give the cash to the MVT, in acknowledgment of the essential function small stages fulfilled in his beginning days.
"I would not have achieved what I am doing today if it wasn't for all the gigs I performed around the North East, and further afield, when I was just getting going," stated Fender. "These locations are renowned, but they are struggling."
From early 2023 onward, at least 150 of these locations have permanently closed – about one-sixth of the total UK scene.
In the last year, major artists like Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its attempts to keep the scene afloat, by applying a small levy to their ticket costs, which benefits smaller concert halls.
Sam Fender also participated, generating in excess of £100,000 on his recent tour to assist thirty-eight local spots across England, Scotland, and Wales.
These funds supported spaces that were dealing with potential shutdown due to issues arising from water damage, fire incidents and bereavements, as well as licensing issues, legal disputes and sound issues.
Some locations received funding support in modernizing infrastructure and gear that directly benefitted performers and fans.
"The concept that funds from shows in large arenas helps the local stages, where it begins for performers like me, is just logical," the star has stated.
He is not the first artist to contribute his Mercury Prize prize money to good deeds.
When they received the prize in the mid-90s for their release their work, vocalist the singer stated that the group would contribute their winnings to the charity War Child.
That year, rapper and singer she divided her bounty across multiple charities, including the NSPCC and a Sickle Cell charity.
"And I donated a grand to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was growing up and they required updated gear," Ms Dynamite told the media.
Two years ago, the band gave their prize money to the local youth club that developed their band, as well as other independent music bodies.
And the 1994 recipients they donated their award to a MS organization after a acquaintance was found to have the illness.
"The victory was sufficient," stated artist Heather Small. "The cash was the extra but we didn't need the bonus, because we had the honor. So our victory touched the lives of others."
Last week, the MVT revealed it had saved a couple of small stages in south-east England, by placing them under community ownership.
The Joiners in Southampton and the second in Bristol were acquired under the public acquisition program, which is backed by the arts council and supporters who acquire "stakes" in the buildings.
