The star has donated the entirety of his £25,000 award cash to the MVT, which functions to save the Britain's grassroots concert spaces.
The star was given the award on 16 October as his latest record People Watching was chosen as the best record of the last 12 months.
Fender has opted to give the cash to the Music Venues Trust, in recognition of the essential function small stages fulfilled in his beginning days.
"I wouldn't be doing this success if it weren't for all the shows I played around the North East, and further afield, when I was just getting going," stated Sam Fender. "These spaces are renowned, but they are facing challenges."
Beginning in 2023, more than 150 of these venues have permanently closed – approximately one-sixth of the total UK scene.
Over the past year, well-known musicians including Pulp, Coldplay, Katy Perry and Sheeran have all aided the trust in its efforts to support the industry, by including a minor surcharge to their ticket prices, which goes to help local stages.
Fender also took part, raising over £100k on his recent tour to assist numerous local spots across Britain.
These funds helped spaces that were facing potential shutdown due to issues arising from flooding, fire incidents and family tragedies, as well as permit problems, conflicts and sound issues.
Some locations were granted monetary aid in modernizing facilities and sound and lighting systems that positively impacted artists and audiences.
"The concept that money from shows in big venues backs the smaller venues, where it all starts for performers like me, is just logical," Sam Fender has stated.
Fender is among several artists to contribute his Mercury Prize prize money to good deeds.
Back when they earned the prize in the year 1996 for their release Different Class, frontman Cocker declared that the band would donate their cash to the charity War Child.
In 2002, rapper and singer the artist shared her bounty across a few good causes, like the NSPCC and a Sickle Cell charity.
"I also contributed a grand to my local community centre, to their gymnastics program, because I practiced gymnastics when I was growing up and they required updated gear," the artist shared with outlets.
Two years ago, the band contributed their funds to the youth organization that supported their act, in addition to other independent music bodies.
Additionally the 1994 recipients the group gave their prize to a charity for MS after a acquaintance was diagnosed the illness.
"Receiving the award was ample," said singer Heather Small. "The prize was the extra but we didn't need the extra, because we had the main prize. So our winning impacted another person's life."
Recently, the trust announced it had protected a couple of grassroots venues in the South East, by transferring them to local control.
The first in that area and The Croft in that location were acquired under the Own Our Venues scheme, which is backed by Arts Council England and music fans who buy "stakes" in the buildings.
