The star has donated the entirety of his £25,000 honor winnings to the Music Venues Trust, which works to protect the UK's grassroots concert spaces.
The star was given the prize on October 16 as his third album the album was named the best record of the last 12 months.
Fender has opted to give the cash to the trust, in acknowledgment of the vital role grassroots venues had in his initial steps.
"As an artist couldn't be pursuing this success if it wasn't for all the shows I performed around the North East, and elsewhere, when I was starting out," said Fender. "These venues are renowned, but they are struggling."
Beginning in 2023, more than 150 of these locations have permanently closed – about one-sixth of the total UK scene.
In the last year, major artists such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its attempts to keep the scene afloat, by applying a small levy to their ticket prices, which supports smaller concert halls.
Sam Fender also participated, collecting over £100k on his live tour to help numerous small stages across the UK.
The donation supported venues that were facing imminent closure due to issues caused by flooding, fire incidents and personal losses, as well as permit problems, conflicts and sound issues.
Other venues obtained monetary aid in modernizing infrastructure and technical equipment that helped artists and concertgoers.
"The notion that revenue from concerts in large arenas helps the smaller venues, where it begins for musicians like me, is just common sense," Fender has commented.
The musician is not the first artist to donate his Mercury Prize prize money to charitable organizations.
Back when they won the award in 1996 for their release the album, vocalist Jarvis Cocker announced that the band would donate their prize money to the charity War Child.
In 2002, rapper and singer she shared her award across several good causes, such as the children's charity and a charity for Sickle Cell.
"I also gave a thousand pounds to Highgate Newtown, to their gymnastics program, because I trained in gymnastics when I was a child and they lacked updated gear," she told the media.
Previously, they gave their funds to the community center that nurtured their band, as well as other local music groups.
Additionally the 1994 recipients the group contributed their award to a MS organization after a close contact was diagnosed the illness.
"Winning was sufficient," stated singer the singer. "The prize was the extra but we could do without the cherry, because we had the honor. So our victory touched the lives of others."
In the past week, the MVT shared it had rescued two small stages in south-east England, by transferring them to public stewardship.
The first in that area and The Croft in that location were bought under the Own Our Venues scheme, which is backed by Arts Council England and enthusiasts who acquire "shares" in the venues.