The artist has handed over the entirety of his twenty-five thousand pound honor winnings to the Music Venues Trust, which functions to preserve the Britain's small live music spots.
The star was presented with the cheque on October 16 as his third album People Watching was named the outstanding release of the previous year.
Fender has opted to give the cash to the MVT, in recognition of the vital role grassroots venues played in his beginning days.
"As an artist couldn't be pursuing this success if it wasn't for all the performances I did around the region, and elsewhere, when I was just getting going," said Sam Fender. "These spaces are iconic, but they are facing challenges."
Beginning in 2023, at least 150 of these venues have ceased operations – roughly one-sixth of the whole industry in the UK.
In the last year, top acts including Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all backed the MVT in its initiatives to keep the scene afloat, by adding a modest fee to their ticket prices, which goes to help local stages.
Fender also took part, collecting more than £100,000 on his recent tour to support thirty-eight local spots across England, Scotland, and Wales.
These funds supported venues that were confronting potential shutdown due to issues caused by water damage, fire incidents and family tragedies, as well as permit problems, court cases and sound issues.
Other venues received funding support in upgrading facilities and technical equipment that directly benefitted artists and concertgoers.
"The concept that funds from shows in large arenas supports the smaller venues, where it begins for artists like me, is just sensible," the star has said.
Fender is not the first artist to donate his Mercury Prize funds to charitable organizations.
In they won the trophy in the year 1996 for their record the album, frontman the singer stated that the band would contribute their winnings to the organization War Child.
That year, artist the artist divided her award among several charities, including the children's charity and a Sickle Cell charity.
"And I contributed a thousand pounds to Highgate Newtown, to their classes, because I practiced gymnastics when I was younger and they lacked updated gear," Ms Dynamite explained to a publication.
In recent years, they contributed their prize money to the youth organization that supported their group, in addition to other grassroots music organisations.
Additionally the 1994 recipients the group contributed their prize to a multiple sclerosis charity after a friend was diagnosed the condition.
"Winning was ample," stated artist the singer. "The money was the extra but we could do without the bonus, because we had the cake. So our success affected the lives of others."
Last week, the trust shared it had rescued a couple of local spots in the South East, by transferring them to local control.
One venue in Southampton and the other in the city were purchased under the Own Our Venues program, which is backed by Arts Council England and enthusiasts who acquire "ownership units" in the properties.