The artist has given the complete sum of his £25k honor prize money to the Music Venues Trust, which functions to protect the UK's independent concert spaces.
The star was awarded the award on October 16 as his latest record People Watching was named the best record of the previous year.
He has chosen to hand the money over to the MVT, in recognition of the vital role local spots played in his early career.
"I couldn't be pursuing what I am doing today if it wasn't for all the gigs I played around the North East, and elsewhere, when I was starting out," said Fender. "These spaces are legendary, but they are facing challenges."
From early 2023 onward, at least 150 of these spaces have ceased operations – approximately one-sixth of the entire UK sector.
Recently, well-known musicians including Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its initiatives to keep the scene afloat, by applying a small levy to their ticket costs, which benefits smaller concert halls.
Sam Fender also took part, raising over £100k on his recent tour to support thirty-eight grassroots venues across England, Scotland, and Wales.
The money supported venues that were dealing with possible closure due to challenges arising from flooding, fires and family tragedies, as well as licensing issues, court cases and neighbor objections.
Some locations obtained funding support in upgrading infrastructure and sound and lighting systems that helped performers and concertgoers.
"The concept that revenue from performances in large arenas helps the smaller venues, where it kicks off for musicians like me, is just sensible," Fender has stated.
He is not the first artist to give his Mercury Prize funds to worthy causes.
When the band received the award in the mid-90s for their album the album, lead singer Cocker declared that the band would contribute their prize money to the organization War Child.
That year, artist she shared her bounty among a few charities, such as the NSPCC and a charity for Sickle Cell.
"I also donated a grand to Highgate Newtown, to their gymnastics class, because I practiced gymnastics when I was younger and they required new equipment," she told a publication.
In recent years, Ezra Collective donated their funds to the local youth club that developed their group, in addition to other local music groups.
Also the 1994 recipients they contributed their award to a charity for MS after a close contact was diagnosed the disease.
"Winning was ample," remarked artist Small. "The prize was the extra but we could do without the cherry, because we had the cake. So our success affected the lives of others."
In the past week, the MVT revealed it had protected several local spots in south-east England, by bringing them into local control.
The Joiners in the city and The Croft in that location were bought under the public acquisition initiative, which is supported by Arts Council England and supporters who acquire "shares" in the venues.
