The artist has handed over the entirety of his twenty-five thousand pound award cash to the MVT, which operates to save the Britain's small live music spots.
He was presented with the award on 16 October as his third album his work was chosen as the outstanding release of the previous year.
He has opted to give the cash to the Music Venues Trust, in appreciation of the vital role grassroots venues had in his early career.
"I personally wouldn't be doing this success if it wasn't for all the shows I played around the region, and further afield, when I was starting out," said Fender. "These spaces are iconic, but they are facing challenges."
Since the start of 2023, at least 150 of these venues have permanently closed – roughly 16 percent of the whole industry in the UK.
Recently, well-known musicians such as Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the trust in its initiatives to support the industry, by applying a modest fee to their ticket prices, which benefits independent venues.
Fender also participated, generating in excess of £100,000 on his recent tour to help numerous local spots across the UK.
The money helped venues that were dealing with imminent closure due to issues caused by water damage, fire incidents and personal losses, as well as permit problems, legal disputes and sound issues.
Additional spaces obtained funding support in modernizing facilities and sound and lighting systems that positively impacted artists and audiences.
"The concept that revenue from performances in large arenas backs the smaller venues, where it kicks off for musicians like me, is just sensible," Sam Fender has said.
He is among several artists to give his Mercury Prize funds to worthy causes.
Back when the band won the prize in the mid-90s for their release Different Class, vocalist Jarvis Cocker declared that the band would donate their cash to the non-profit War Child.
During 2002, musician she shared her prize across several charities, including the NSPCC and a Sickle Cell organization.
"I also contributed a £1,000 to Highgate Newtown, to their gymnastics class, because I trained in gymnastics when I was a child and they needed new equipment," she shared with a publication.
Two years ago, the band contributed their winnings to the local youth club that nurtured their act, alongside other independent music bodies.
Also winners that year they gave their winnings to a charity for MS after a friend was diagnosed the disease.
"Receiving the award was sufficient," said singer Small. "The money was the bonus but we could do without the extra, because we had the honor. So our winning touched another person's life."
Recently, the trust announced it had protected several grassroots venues in the South East, by bringing them into community ownership.
The Joiners in that area and The Croft in Bristol were bought under the public acquisition initiative, which is funded by a national body and enthusiasts who purchase "shares" in the venues.
