The artist has handed over the complete sum of his £25k honor winnings to the MVT, which operates to save the UK's independent concert spaces.
The star was awarded the award on 16 October as his third album his work was named the top album of the last 12 months.
Fender has opted to donate the funds to the Music Venues Trust, in appreciation of the essential function local spots played in his initial steps.
"I couldn't be pursuing my current career if it weren't for all the performances I played around the North East, and elsewhere, when I was starting out," remarked the artist. "These spaces are renowned, but they are struggling."
Since the start of 2023, over 150 of these spaces have permanently closed – roughly one-sixth of the entire UK sector.
Over the past year, well-known musicians like Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its initiatives to keep the scene afloat, by applying a modest fee to their ticket costs, which goes to help smaller concert halls.
Sam Fender also joined in, collecting over £100k on his recent tour to support numerous grassroots venues across England, Scotland, and Wales.
The money assisted spaces that were confronting possible closure due to difficulties caused by water damage, fires and personal losses, as well as regulatory hurdles, court cases and sound issues.
Some locations were granted funding support in upgrading infrastructure and sound and lighting systems that helped artists and fans.
"The concept that funds from shows in large arenas supports the local stages, where it kicks off for performers like me, is just common sense," Sam Fender has stated.
Fender is among several artists to donate his Mercury Prize prize money to good deeds.
In Pulp won the trophy in the year 1996 for their album Different Class, frontman Cocker declared that the act would donate their prize money to the organization War Child.
That year, artist the artist shared her bounty across several charities, including the NSPCC and a Sickle Cell organization.
"And I gave a thousand pounds to Highgate Newtown, to their gymnastics class, because I practiced gymnastics when I was a child and they needed new equipment," she told the media.
Two years ago, they contributed their winnings to the youth organization that nurtured their band, alongside other local music groups.
Also 1994 winners M People contributed their winnings to a MS organization after a acquaintance was diagnosed the condition.
"Receiving the award was ample," said vocalist Heather Small. "The prize was the extra but we didn't need the bonus, because we had the honor. So our winning impacted somebody else's life."
Recently, the Music Venues Trust shared it had rescued several small stages in that region, by transferring them to community ownership.
The first in Southampton and the second in Bristol were acquired under the public acquisition initiative, which is supported by Arts Council England and enthusiasts who purchase "ownership units" in the venues.
