The star has donated the entirety of his twenty-five thousand pound honor cash to the Music Venues Trust, which works to save the Britain's independent concert spaces.
The star was presented with the cheque on mid-October as his latest record People Watching was named the best record of the past year.
He has opted to give the cash to the trust, in recognition of the essential function local spots played in his early career.
"I would not have achieved this success if it weren't for all the performances I performed around the region, and further afield, when I was just getting going," said the artist. "These spaces are iconic, but they are facing challenges."
Beginning in 2023, over 150 of these spaces have ceased operations – about one-sixth of the total UK scene.
Over the past year, top acts including Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its initiatives to keep the scene afloat, by including a small levy to their admission fees, which supports independent venues.
Fender also took part, collecting more than £100,000 on his recent tour to assist 38 small stages across England, Scotland, and Wales.
These funds helped spaces that were dealing with imminent closure due to difficulties arising from water damage, fire incidents and bereavements, as well as permit problems, conflicts and neighbor objections.
Some locations were granted monetary aid in modernizing amenities and gear that helped performers and fans.
"The idea that money from concerts in big venues helps the smaller venues, where it all starts for musicians like me, is just logical," Sam Fender has said.
Fender is not the first artist to contribute his Mercury Prize funds to worthy causes.
In they won the trophy in 1996 for their record Different Class, vocalist Cocker announced that the act would give their prize money to the charity War Child.
During 2002, musician the artist split her award across a few good causes, such as the NSPCC and a charity for Sickle Cell.
"And I donated a thousand pounds to the center, to their classes, because I practiced gymnastics when I was growing up and they lacked updated gear," the artist told outlets.
Two years ago, Ezra Collective gave their prize money to the local youth club that supported their act, as well as other grassroots music organisations.
Also the 1994 recipients the group gave their prize to a multiple sclerosis charity after a friend was identified with the condition.
"Receiving the award was quite enough," stated vocalist Heather Small. "The money was the cherry on top but we didn't require the bonus, because we had the cake. So our success touched another person's life."
In the past week, the MVT revealed it had rescued two grassroots venues in that region, by placing them under local control.
The first in Southampton and the other in the city were bought under the community ownership initiative, which is supported by the arts council and enthusiasts who acquire "stakes" in the venues.