The star has given the complete sum of his twenty-five thousand pound honor winnings to the Music Venues Trust, which functions to preserve the United Kingdom's grassroots music venues.
He was given the award on mid-October as his third album People Watching was declared the outstanding release of the previous year.
The musician has opted to give the cash to the Music Venues Trust, in appreciation of the crucial part small stages had in his beginning days.
"I personally would not have achieved what I am doing today if it wasn't for all the shows I played around the area, and elsewhere, when I was just getting going," said Fender. "These spaces are legendary, but they are in difficulty."
Beginning in 2023, over 150 of these locations have permanently closed – about one-sixth of the total UK scene.
Recently, well-known musicians including the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its initiatives to keep the scene afloat, by applying a small levy to their ticket costs, which supports local stages.
Sam Fender also took part, collecting more than £100,000 on his live tour to support 38 local spots across the UK.
The money assisted locations that were confronting potential shutdown due to challenges arising from water damage, fires and personal losses, as well as regulatory hurdles, legal disputes and neighbor objections.
Some locations obtained monetary aid in upgrading amenities and gear that helped performers and fans.
"The notion that revenue from concerts in large arenas backs the independent spots, where it begins for artists like me, is just sensible," Fender has said.
He is far from the only musician to donate his Mercury Prize funds to charitable organizations.
In the band won the award in 1996 for their record Different Class, frontman the singer announced that the group would give their winnings to the organization War Child.
That year, artist Ms Dynamite divided her bounty between multiple charities, such as the NSPCC and a charity for Sickle Cell.
"And I donated a grand to my local community centre, to their gymnastics class, because I trained in gymnastics when I was a child and they needed better apparatus," the artist shared with the media.
Two years ago, Ezra Collective contributed their funds to the youth organization that supported their group, as well as other local music groups.
Additionally 1994 winners they contributed their award to a MS organization after a friend was identified with the disease.
"Receiving the award was sufficient," remarked singer Heather Small. "The money was the cherry on top but we could do without the cherry, because we had the main prize. So our winning affected somebody else's life."
In the past week, the MVT revealed it had rescued a couple of grassroots venues in south-east England, by transferring them to community ownership.
The Joiners in that area and the second in that location were acquired under the Own Our Venues initiative, which is supported by a national body and enthusiasts who acquire "stakes" in the venues.