The artist has donated the complete sum of his £25k award cash to the Music Venues Trust, which operates to protect the United Kingdom's grassroots live music spots.
He was given the cheque on 16 October as his third album People Watching was chosen as the best record of the previous year.
The musician has opted to donate the funds to the MVT, in recognition of the crucial part small stages had in his initial steps.
"As an artist wouldn't be doing this success if it hadn't been for all the gigs I did around the area, and beyond, when I was just getting going," remarked Fender. "These spaces are iconic, but they are in difficulty."
Beginning in 2023, over 150 of these locations have ceased operations – roughly 16 percent of the whole industry in the UK.
Over the past year, major artists like the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its initiatives to support the industry, by applying a small levy to their ticket prices, which goes to help independent venues.
Sam Fender also took part, generating over £100k on his live tour to support thirty-eight grassroots venues across Britain.
The money helped locations that were confronting imminent closure due to challenges arising from floods, fire incidents and bereavements, as well as permit problems, conflicts and noise complaints.
Some locations received funding support in upgrading amenities and technical equipment that positively impacted artists and fans.
"The idea that money from shows in big venues backs the smaller venues, where it all starts for musicians like me, is just logical," Fender has said.
He is not the first artist to donate his Mercury Prize funds to good deeds.
Back when Pulp won the trophy in 1996 for their album their work, lead singer Cocker stated that the act would donate their cash to the organization War Child.
In 2002, musician she divided her prize between a few good causes, such as the children's charity and a Sickle Cell organization.
"I also gave a £1,000 to my local community centre, to their gymnastics class, because I trained in gymnastics when I was growing up and they needed better apparatus," she shared with outlets.
In recent years, they donated their prize money to the youth organization that nurtured their band, in addition to other local music groups.
Also winners that year they contributed their winnings to a multiple sclerosis charity after a friend was diagnosed the illness.
"Receiving the award was sufficient," said artist the singer. "The money was the bonus but we didn't require the extra, because we had the main prize. So our success affected another person's life."
In the past week, the trust shared it had saved several small stages in that region, by transferring them to community ownership.
The first in Southampton and the other in that location were acquired under the public acquisition initiative, which is backed by Arts Council England and music fans who acquire "shares" in the venues.
