The artist has donated the full amount of his £25,000 honor cash to the Music Venues Trust, which operates to save the UK's independent concert spaces.
Fender was presented with the award on mid-October as his third album the album was chosen as the best record of the past year.
Fender has opted to give the cash to the MVT, in appreciation of the crucial part small stages had in his initial steps.
"As an artist would not have achieved what I am doing today if it hadn't been for all the performances I played around the North East, and further afield, when I was beginning," said the artist. "These spaces are iconic, but they are in difficulty."
Since the start of 2023, at least 150 of these venues have ceased operations – approximately one-sixth of the whole industry in the UK.
In the last year, well-known musicians like Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its initiatives to support the industry, by applying a minor surcharge to their ticket prices, which supports local stages.
Fender also participated, raising over £100k on his recent tour to assist numerous small stages across Britain.
The money supported spaces that were dealing with potential shutdown due to issues arising from floods, blazes and family tragedies, as well as permit problems, conflicts and noise complaints.
Other venues obtained funding support in improving infrastructure and gear that positively impacted performers and fans.
"The idea that revenue from shows in major spaces supports the smaller venues, where it all starts for musicians like me, is just common sense," Sam Fender has said.
He is not the first artist to give his Mercury Prize funds to charitable organizations.
Back when they earned the trophy in the year 1996 for their album the album, lead singer the singer stated that the group would give their winnings to the organization War Child.
During 2002, artist she divided her award across a few organizations, including the NSPCC and a charity for Sickle Cell.
"Additionally, I gave a thousand pounds to the center, to their classes, because I trained in gymnastics when I was younger and they lacked new equipment," Ms Dynamite shared with the media.
In recent years, they contributed their prize money to the youth organization that supported their band, in addition to other grassroots music organisations.
Also winners that year they contributed their prize to a MS organization after a close contact was identified with the disease.
"The victory was sufficient," remarked singer the singer. "The money was the bonus but we didn't need the cherry, because we had the main prize. So our success touched the lives of others."
Recently, the MVT shared it had protected a couple of small stages in that region, by placing them under local control.
The Joiners in Southampton and the second in the city were bought under the Own Our Venues scheme, which is supported by the arts council and enthusiasts who buy "stakes" in the venues.
