The star has handed over the full amount of his twenty-five thousand pound honor cash to the MVT, which functions to preserve the United Kingdom's grassroots live music spots.
Fender was given the prize on mid-October as his third album People Watching was named the best record of the past year.
The musician has opted to hand the money over to the Music Venues Trust, in recognition of the crucial part small stages fulfilled in his initial steps.
"I personally wouldn't be doing this success if it weren't for all the shows I performed around the North East, and elsewhere, when I was just getting going," stated Sam Fender. "These venues are renowned, but they are in difficulty."
Beginning in 2023, more than 150 of these spaces have shut down – about 16% of the entire UK sector.
Over the past year, major artists including Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its attempts to support the industry, by adding a modest fee to their ticket costs, which goes to help independent venues.
Sam Fender also joined in, generating in excess of £100,000 on his recent tour to support 38 grassroots venues across England, Scotland, and Wales.
These funds supported spaces that were confronting imminent closure due to issues caused by water damage, fire incidents and family tragedies, as well as regulatory hurdles, legal disputes and neighbor objections.
Other venues received funding support in upgrading infrastructure and technical equipment that positively impacted artists and audiences.
"The idea that revenue from concerts in big venues supports the smaller venues, where it begins for musicians like me, is just logical," Fender has said.
He is far from the only musician to contribute his Mercury Prize funds to charitable organizations.
In Pulp received the prize in 1996 for their album Different Class, frontman Cocker stated that the act would donate their winnings to the organization War Child.
That year, rapper and singer the artist split her bounty between a few charities, including the NSPCC and a Sickle Cell organization.
"Additionally, I donated a £1,000 to the center, to their gymnastics program, because I practiced gymnastics when I was growing up and they lacked updated gear," she told the media.
Two years ago, the band contributed their funds to the youth organization that supported their act, alongside other local music groups.
And 1994 winners M People gave their award to a MS organization after a close contact was found to have the illness.
"The victory was quite enough," stated artist Small. "The cash was the cherry on top but we didn't require the cherry, because we had the main prize. So our winning impacted somebody else's life."
Recently, the MVT announced it had saved two grassroots venues in that region, by placing them under local control.
The Joiners in the city and The Croft in the city were acquired under the community ownership initiative, which is supported by the arts council and enthusiasts who buy "shares" in the buildings.