The artist has given the complete sum of his twenty-five thousand pound award cash to the trust for venues, which functions to protect the United Kingdom's grassroots live music spots.
He was given the prize on October 16 as his new release the album was chosen as the best record of the last 12 months.
Fender has decided to donate the funds to the Music Venues Trust, in acknowledgment of the vital role local spots had in his initial steps.
"As an artist would not have achieved what I am doing today if it weren't for all the gigs I performed around the North East, and further afield, when I was beginning," said Fender. "These venues are legendary, but they are in difficulty."
Since the start of 2023, over 150 of these venues have permanently closed – roughly one-sixth of the whole industry in the UK.
Recently, major artists such as Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all backed the trust in its attempts to keep the scene afloat, by adding a small levy to their ticket prices, which goes to help independent venues.
Sam Fender also took part, collecting in excess of £100,000 on his recent tour to help thirty-eight small stages across Britain.
The donation helped locations that were facing potential shutdown due to issues stemming from flooding, blazes and personal losses, as well as regulatory hurdles, court cases and noise complaints.
Other venues were granted financial assistance in upgrading facilities and gear that helped musicians and fans.
"The idea that funds from concerts in large arenas supports the local stages, where it all starts for performers like me, is just logical," Fender has said.
The musician is among several artists to contribute his Mercury Prize winnings to good deeds.
Back when they won the trophy in the mid-90s for their release their work, vocalist Jarvis Cocker announced that the act would donate their prize money to the organization the charity.
In 2002, musician the artist divided her bounty among a few charities, including the NSPCC and a Sickle Cell charity.
"I also contributed a £1,000 to the center, to their classes, because I did gymnastics when I was younger and they required better apparatus," she told outlets.
In recent years, Ezra Collective donated their prize money to the community center that supported their band, as well as other local music groups.
Also winners that year they gave their award to a MS organization after a acquaintance was identified with the illness.
"Receiving the award was sufficient," said artist Heather Small. "The prize was the bonus but we didn't need the bonus, because we had the cake. So our winning impacted the lives of others."
In the past week, the Music Venues Trust announced it had rescued several local spots in south-east England, by transferring them to public stewardship.
One venue in the city and The Croft in that location were bought under the Own Our Venues program, which is backed by Arts Council England and music fans who acquire "shares" in the buildings.