The star has donated the entirety of his £25,000 award cash to the Music Venues Trust, which works to save the Britain's small concert spaces.
He was awarded the prize on mid-October as his latest record People Watching was chosen as the top album of the past year.
He has decided to donate the funds to the Music Venues Trust, in acknowledgment of the crucial part grassroots venues fulfilled in his initial steps.
"As an artist would not have achieved my current career if it wasn't for all the shows I played around the area, and beyond, when I was beginning," remarked Sam Fender. "These venues are iconic, but they are in difficulty."
Beginning in 2023, at least 150 of these locations have shut down – about 16 percent of the whole industry in the UK.
Over the past year, top acts including Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its attempts to help venues survive, by including a small levy to their admission fees, which goes to help smaller concert halls.
Sam Fender also joined in, raising more than £100,000 on his live tour to assist thirty-eight small stages across England, Scotland, and Wales.
These funds helped spaces that were confronting imminent closure due to challenges arising from water damage, blazes and personal losses, as well as permit problems, court cases and neighbor objections.
Other venues obtained funding support in modernizing infrastructure and technical equipment that helped performers and audiences.
"The idea that money from shows in big venues supports the local stages, where it begins for performers like me, is just sensible," Fender has stated.
The musician is among several artists to give his Mercury Prize funds to worthy causes.
Back when they earned the trophy in the mid-90s for their release the album, vocalist the singer declared that the group would give their winnings to the organization War Child.
In 2002, musician Ms Dynamite divided her award among several organizations, like the NSPCC and a charity for Sickle Cell.
"And I contributed a thousand pounds to the center, to their classes, because I did gymnastics when I was younger and they needed new equipment," she shared with a publication.
Previously, the band gave their funds to the community center that developed their band, as well as other independent music bodies.
Additionally winners that year M People contributed their award to a MS organization after a friend was found to have the condition.
"Receiving the award was quite enough," stated vocalist the singer. "The prize was the extra but we didn't need the extra, because we had the honor. So our success impacted the lives of others."
Recently, the Music Venues Trust announced it had rescued a couple of small stages in south-east England, by placing them under public stewardship.
The Joiners in the city and The Croft in the city were acquired under the Own Our Venues scheme, which is funded by the arts council and enthusiasts who acquire "shares" in the buildings.