The artist has given the full amount of his £25,000 award cash to the Music Venues Trust, which works to preserve the Britain's grassroots concert spaces.
The star was awarded the award on mid-October as his third album the album was declared the top album of the past year.
Fender has chosen to donate the funds to the Music Venues Trust, in appreciation of the crucial part grassroots venues had in his initial steps.
"As an artist wouldn't be doing my current career if it hadn't been for all the gigs I performed around the area, and further afield, when I was beginning," remarked the artist. "These locations are iconic, but they are facing challenges."
Beginning in 2023, more than 150 of these locations have shut down – about 16% of the whole industry in the UK.
Over the past year, top acts such as the band Pulp, Coldplay, Katy Perry and Sheeran have all aided the Music Venues Trust in its initiatives to support the industry, by adding a modest fee to their ticket prices, which goes to help local stages.
He also joined in, collecting in excess of £100,000 on his recent tour to support thirty-eight small stages across the UK.
The donation helped venues that were confronting potential shutdown due to issues stemming from floods, fire incidents and personal losses, as well as permit problems, legal disputes and neighbor objections.
Other venues received financial assistance in modernizing facilities and technical equipment that helped musicians and concertgoers.
"The idea that funds from performances in major spaces backs the independent spots, where it kicks off for performers like me, is just sensible," Sam Fender has commented.
Fender is among several artists to give his Mercury Prize prize money to good deeds.
Back when the band received the prize in 1996 for their record Different Class, lead singer Cocker stated that the band would donate their winnings to the charity War Child.
During 2002, musician she split her bounty between multiple good causes, such as the children's charity and a Sickle Cell charity.
"And I donated a £1,000 to my local community centre, to their gymnastics program, because I trained in gymnastics when I was younger and they required updated gear," the artist told the media.
Previously, the band donated their winnings to the youth organization that supported their act, as well as other grassroots music organisations.
Additionally winners that year they contributed their award to a multiple sclerosis charity after a friend was diagnosed the condition.
"Receiving the award was quite enough," remarked singer the singer. "The prize was the extra but we didn't require the cherry, because we had the main prize. So our victory touched another person's life."
In the past week, the MVT revealed it had saved several local spots in south-east England, by bringing them into local control.
The Joiners in the city and The Croft in Bristol were bought under the public acquisition scheme, which is supported by a national body and enthusiasts who acquire "ownership units" in the buildings.