The artist has handed over the full amount of his £25k honor cash to the Music Venues Trust, which functions to protect the Britain's independent music venues.
The star was presented with the prize on 16 October as his third album the album was named the outstanding release of the previous year.
Fender has chosen to give the cash to the MVT, in appreciation of the essential function local spots fulfilled in his early career.
"I personally would not have achieved this success if it wasn't for all the gigs I performed around the area, and further afield, when I was just getting going," said Sam Fender. "These spaces are renowned, but they are facing challenges."
Since the start of 2023, more than 150 of these locations have permanently closed – roughly one-sixth of the entire UK sector.
In the last year, top acts including the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its attempts to help venues survive, by applying a minor surcharge to their ticket prices, which benefits local stages.
Fender also joined in, collecting over £100k on his live tour to assist numerous grassroots venues across Britain.
The donation helped spaces that were confronting possible closure due to issues arising from water damage, fires and bereavements, as well as regulatory hurdles, court cases and neighbor objections.
Other venues were granted monetary aid in modernizing amenities and gear that positively impacted performers and audiences.
"The concept that funds from shows in big venues helps the local stages, where it begins for artists like me, is just logical," Fender has stated.
The musician is among several artists to give his Mercury Prize winnings to charitable organizations.
In the band received the trophy in the year 1996 for their album Different Class, vocalist Jarvis Cocker declared that the group would donate their prize money to the non-profit War Child.
That year, rapper and singer Ms Dynamite shared her award across multiple charities, such as the NSPCC and a Sickle Cell organization.
"Additionally, I gave a grand to the center, to their gymnastics class, because I practiced gymnastics when I was younger and they required new equipment," the artist told a publication.
Two years ago, the band contributed their winnings to the local youth club that supported their band, as well as other grassroots music organisations.
Also the 1994 recipients the group contributed their winnings to a charity for MS after a friend was found to have the disease.
"Receiving the award was ample," remarked vocalist the singer. "The money was the bonus but we didn't require the extra, because we had the honor. So our victory impacted the lives of others."
Recently, the Music Venues Trust revealed it had rescued a couple of small stages in south-east England, by bringing them into local control.
One venue in that area and the other in the city were purchased under the community ownership initiative, which is supported by the arts council and supporters who purchase "shares" in the properties.
