The star has handed over the entirety of his £25,000 award cash to the MVT, which works to preserve the United Kingdom's small concert spaces.
Fender was presented with the prize on mid-October as his latest record the album was named the outstanding release of the past year.
He has chosen to give the cash to the Music Venues Trust, in acknowledgment of the crucial part grassroots venues had in his beginning days.
"I personally would not have achieved this success if it weren't for all the performances I played around the region, and beyond, when I was starting out," stated the artist. "These locations are iconic, but they are facing challenges."
Beginning in 2023, more than 150 of these spaces have ceased operations – about 16 percent of the whole industry in the UK.
In the last year, major artists including Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the MVT in its attempts to keep the scene afloat, by adding a small levy to their ticket costs, which goes to help smaller concert halls.
Sam Fender also joined in, generating more than £100,000 on his live tour to assist numerous grassroots venues across Britain.
The money assisted venues that were facing potential shutdown due to issues arising from water damage, fires and bereavements, as well as licensing issues, court cases and neighbor objections.
Other venues received monetary aid in modernizing amenities and gear that positively impacted performers and concertgoers.
"The notion that money from concerts in large arenas backs the independent spots, where it all starts for artists like me, is just logical," Sam Fender has stated.
The musician is among several artists to donate his Mercury Prize funds to good deeds.
In the band received the prize in the year 1996 for their record their work, vocalist the singer declared that the group would donate their winnings to the non-profit War Child.
In 2002, artist she split her award across several good causes, like the NSPCC and a charity for Sickle Cell.
"And I gave a grand to my local community centre, to their gymnastics class, because I practiced gymnastics when I was growing up and they required new equipment," the artist explained to the media.
Two years ago, Ezra Collective contributed their prize money to the local youth club that developed their act, as well as other local music groups.
Also 1994 winners they donated their winnings to a multiple sclerosis charity after a close contact was diagnosed the condition.
"Receiving the award was sufficient," stated vocalist Small. "The cash was the bonus but we didn't need the bonus, because we had the cake. So our success affected somebody else's life."
Last week, the MVT shared it had saved two small stages in the South East, by bringing them into public stewardship.
One venue in the city and The Croft in the city were purchased under the community ownership initiative, which is funded by Arts Council England and enthusiasts who purchase "shares" in the venues.
