The artist has given the full amount of his twenty-five thousand pound honor cash to the MVT, which operates to protect the United Kingdom's independent music venues.
He was awarded the prize on October 16 as his latest record People Watching was named the outstanding release of the past year.
The musician has opted to hand the money over to the Music Venues Trust, in acknowledgment of the crucial part grassroots venues played in his initial steps.
"I couldn't be pursuing this success if it weren't for all the shows I performed around the area, and beyond, when I was starting out," said Sam Fender. "These locations are iconic, but they are in difficulty."
Beginning in 2023, at least 150 of these locations have ceased operations – roughly 16% of the entire UK sector.
Over the past year, top acts including Pulp, Coldplay, the singer Katy Perry and Sheeran have all aided the MVT in its efforts to keep the scene afloat, by including a small levy to their admission fees, which supports independent venues.
Sam Fender also participated, raising over £100k on his recent tour to support numerous local spots across the UK.
These funds helped venues that were dealing with imminent closure due to difficulties caused by flooding, fire incidents and bereavements, as well as licensing issues, court cases and noise complaints.
Additional spaces received financial assistance in modernizing amenities and gear that positively impacted artists and fans.
"The notion that revenue from performances in large arenas helps the independent spots, where it kicks off for artists like me, is just common sense," the star has said.
Fender is far from the only musician to give his Mercury Prize funds to worthy causes.
When they won the prize in 1996 for their record their work, lead singer the singer stated that the group would contribute their prize money to the charity War Child.
During 2002, rapper and singer the artist shared her bounty across multiple organizations, such as the children's charity and a Sickle Cell charity.
"And I contributed a thousand pounds to my local community centre, to their gymnastics program, because I practiced gymnastics when I was growing up and they lacked updated gear," the artist shared with a publication.
In recent years, they gave their funds to the local youth club that nurtured their group, in addition to other grassroots music organisations.
Additionally 1994 winners the group donated their winnings to a charity for MS after a acquaintance was found to have the illness.
"Winning was quite enough," said artist Small. "The prize was the extra but we didn't require the cherry, because we had the honor. So our winning touched another person's life."
In the past week, the Music Venues Trust revealed it had rescued several small stages in that region, by bringing them into community ownership.
The Joiners in the city and the other in Bristol were purchased under the community ownership program, which is funded by Arts Council England and enthusiasts who acquire "stakes" in the properties.