The artist has given the full amount of his £25k honor cash to the Music Venues Trust, which functions to save the Britain's grassroots music venues.
The star was given the prize on mid-October as his new release his work was chosen as the outstanding release of the past year.
He has decided to hand the money over to the MVT, in acknowledgment of the essential function small stages fulfilled in his beginning days.
"I personally would not have achieved what I am doing today if it hadn't been for all the gigs I played around the area, and elsewhere, when I was just getting going," said Fender. "These venues are renowned, but they are struggling."
Since the start of 2023, at least 150 of these locations have permanently closed – roughly 16 percent of the whole industry in the UK.
In the last year, major artists like Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the trust in its attempts to keep the scene afloat, by adding a small levy to their ticket prices, which benefits smaller concert halls.
He also took part, collecting more than £100,000 on his live tour to support 38 grassroots venues across the UK.
The donation helped spaces that were dealing with imminent closure due to difficulties arising from flooding, fires and family tragedies, as well as licensing issues, court cases and sound issues.
Other venues were granted monetary aid in improving infrastructure and gear that directly benefitted performers and audiences.
"The notion that funds from performances in big venues backs the local stages, where it begins for musicians like me, is just common sense," Sam Fender has said.
He is among several artists to donate his Mercury Prize prize money to good deeds.
When they won the prize in the year 1996 for their album Different Class, frontman Cocker stated that the act would contribute their cash to the charity War Child.
In 2002, artist the artist shared her award among several good causes, including the children's charity and a Sickle Cell charity.
"I also contributed a grand to Highgate Newtown, to their gymnastics program, because I trained in gymnastics when I was a child and they needed new equipment," the artist told the media.
Two years ago, they gave their winnings to the local youth club that nurtured their act, alongside other local music groups.
And winners that year M People gave their winnings to a charity for MS after a acquaintance was found to have the condition.
"The victory was ample," said vocalist Small. "The prize was the extra but we could do without the cherry, because we had the main prize. So our success affected the lives of others."
In the past week, the MVT announced it had rescued several local spots in south-east England, by bringing them into local control.
The Joiners in that area and the second in Bristol were acquired under the Own Our Venues program, which is funded by the arts council and supporters who purchase "shares" in the properties.
