The artist has handed over the entirety of his £25k honor winnings to the Music Venues Trust, which works to protect the UK's independent concert spaces.
The star was awarded the prize on mid-October as his new release his work was declared the outstanding release of the last 12 months.
Fender has decided to donate the funds to the trust, in acknowledgment of the essential function small stages had in his early career.
"I wouldn't be doing what I am doing today if it weren't for all the shows I performed around the area, and elsewhere, when I was starting out," remarked Sam Fender. "These locations are legendary, but they are facing challenges."
From early 2023 onward, over 150 of these spaces have permanently closed – about one-sixth of the entire UK sector.
Over the past year, major artists including Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the trust in its initiatives to help venues survive, by applying a minor surcharge to their ticket costs, which benefits smaller concert halls.
He also took part, raising in excess of £100,000 on his recent tour to help 38 grassroots venues across Britain.
These funds assisted spaces that were confronting potential shutdown due to challenges arising from flooding, blazes and bereavements, as well as permit problems, court cases and sound issues.
Some locations were granted financial assistance in upgrading amenities and gear that positively impacted performers and concertgoers.
"The notion that funds from concerts in large arenas helps the smaller venues, where it kicks off for musicians like me, is just logical," Fender has said.
He is among several artists to contribute his Mercury Prize funds to worthy causes.
When Pulp won the trophy in the mid-90s for their release the album, vocalist Jarvis Cocker declared that the band would give their winnings to the non-profit War Child.
In 2002, musician she shared her prize across a few charities, including the NSPCC and a Sickle Cell charity.
"Additionally, I donated a grand to the center, to their gymnastics program, because I trained in gymnastics when I was a child and they required better apparatus," she shared with outlets.
Two years ago, they donated their prize money to the local youth club that supported their act, as well as other local music groups.
Additionally the 1994 recipients they gave their award to a multiple sclerosis charity after a close contact was identified with the disease.
"Receiving the award was quite enough," said vocalist Small. "The prize was the bonus but we could do without the bonus, because we had the main prize. So our success impacted somebody else's life."
In the past week, the MVT revealed it had rescued several grassroots venues in that region, by placing them under local control.
One venue in the city and the second in the city were acquired under the Own Our Venues scheme, which is supported by the arts council and supporters who purchase "shares" in the properties.
