The artist has handed over the complete sum of his £25,000 honor cash to the Music Venues Trust, which operates to preserve the UK's small live music spots.
He was presented with the prize on mid-October as his new release the album was declared the outstanding release of the last 12 months.
Fender has chosen to donate the funds to the trust, in appreciation of the essential function local spots had in his beginning days.
"I personally wouldn't be doing this success if it hadn't been for all the gigs I did around the North East, and elsewhere, when I was starting out," remarked Sam Fender. "These venues are renowned, but they are struggling."
From early 2023 onward, at least 150 of these spaces have permanently closed – roughly one-sixth of the whole industry in the UK.
Recently, major artists including Pulp, Coldplay, the singer Katy Perry and Sheeran have all backed the trust in its attempts to support the industry, by adding a small levy to their admission fees, which benefits local stages.
He also took part, generating over £100k on his live tour to assist numerous grassroots venues across England, Scotland, and Wales.
The donation supported venues that were dealing with imminent closure due to issues stemming from floods, blazes and bereavements, as well as licensing issues, conflicts and neighbor objections.
Other venues were granted funding support in upgrading amenities and gear that helped musicians and concertgoers.
"The concept that funds from performances in large arenas supports the independent spots, where it all starts for artists like me, is just logical," Fender has commented.
He is among several artists to give his Mercury Prize winnings to worthy causes.
Back when Pulp received the trophy in 1996 for their record Different Class, lead singer Cocker announced that the act would give their cash to the organization War Child.
During 2002, musician the artist divided her prize across multiple charities, like the children's charity and a Sickle Cell organization.
"I also donated a thousand pounds to the center, to their gymnastics program, because I did gymnastics when I was a child and they lacked new equipment," Ms Dynamite shared with the media.
Two years ago, they donated their funds to the community center that nurtured their group, alongside other local music groups.
And the 1994 recipients M People donated their award to a multiple sclerosis charity after a friend was diagnosed the condition.
"Winning was sufficient," stated singer Heather Small. "The prize was the cherry on top but we didn't require the cherry, because we had the honor. So our victory affected another person's life."
Last week, the trust announced it had saved a couple of grassroots venues in the South East, by transferring them to community ownership.
One venue in the city and the other in that location were acquired under the public acquisition program, which is funded by the arts council and music fans who purchase "shares" in the buildings.