The star has donated the full amount of his £25k honor winnings to the Music Venues Trust, which operates to save the UK's independent concert spaces.
He was given the award on mid-October as his third album the album was chosen as the best record of the last 12 months.
Fender has opted to hand the money over to the MVT, in recognition of the vital role small stages had in his initial steps.
"I couldn't be pursuing what I am doing today if it hadn't been for all the shows I did around the North East, and beyond, when I was beginning," said Fender. "These venues are iconic, but they are in difficulty."
Beginning in 2023, over 150 of these spaces have ceased operations – roughly 16 percent of the entire UK sector.
Over the past year, major artists including Pulp, Coldplay, Katy Perry and Sheeran have all supported the MVT in its initiatives to support the industry, by including a minor surcharge to their admission fees, which benefits local stages.
Sam Fender also took part, generating in excess of £100,000 on his 2024 arena tour to help thirty-eight local spots across the UK.
The money assisted venues that were confronting possible closure due to issues arising from floods, fire incidents and bereavements, as well as permit problems, legal disputes and sound issues.
Additional spaces received monetary aid in upgrading infrastructure and sound and lighting systems that helped artists and fans.
"The concept that funds from shows in big venues helps the smaller venues, where it all starts for performers like me, is just logical," Fender has stated.
He is not the first artist to contribute his Mercury Prize winnings to good deeds.
When Pulp received the prize in the mid-90s for their release the album, frontman Jarvis Cocker stated that the group would donate their cash to the organization War Child.
During 2002, artist Ms Dynamite shared her award between multiple charities, like the NSPCC and a Sickle Cell charity.
"And I contributed a thousand pounds to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was growing up and they needed better apparatus," the artist shared with outlets.
In recent years, Ezra Collective donated their winnings to the community center that supported their act, as well as other grassroots music organisations.
Also the 1994 recipients M People contributed their winnings to a charity for MS after a acquaintance was identified with the illness.
"Winning was sufficient," remarked artist the singer. "The money was the extra but we didn't require the extra, because we had the honor. So our success touched the lives of others."
Last week, the trust shared it had protected several grassroots venues in that region, by transferring them to community ownership.
The first in that area and The Croft in the city were acquired under the Own Our Venues program, which is supported by a national body and enthusiasts who purchase "ownership units" in the buildings.
