The star has given the complete sum of his £25,000 award cash to the Music Venues Trust, which functions to preserve the United Kingdom's independent music venues.
He was presented with the cheque on mid-October as his new release the album was chosen as the top album of the previous year.
He has opted to hand the money over to the Music Venues Trust, in recognition of the essential function small stages fulfilled in his early career.
"As an artist couldn't be pursuing what I am doing today if it wasn't for all the shows I did around the North East, and further afield, when I was just getting going," remarked Sam Fender. "These venues are iconic, but they are facing challenges."
Since the start of 2023, more than 150 of these spaces have shut down – roughly 16 percent of the whole industry in the UK.
Recently, top acts including Pulp, Coldplay, Katy Perry and Sheeran have all supported the Music Venues Trust in its initiatives to keep the scene afloat, by including a small levy to their ticket costs, which benefits independent venues.
Fender also participated, raising in excess of £100,000 on his recent tour to help numerous local spots across Britain.
The money supported venues that were facing imminent closure due to challenges arising from floods, fires and family tragedies, as well as regulatory hurdles, court cases and sound issues.
Other venues received funding support in upgrading amenities and sound and lighting systems that positively impacted musicians and concertgoers.
"The notion that revenue from concerts in big venues supports the local stages, where it kicks off for musicians like me, is just common sense," Fender has said.
He is among several artists to contribute his Mercury Prize funds to good deeds.
Back when they won the trophy in 1996 for their release Different Class, lead singer the singer declared that the band would donate their winnings to the non-profit War Child.
In 2002, musician she split her award among multiple organizations, including the children's charity and a Sickle Cell charity.
"And I contributed a grand to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was a child and they lacked better apparatus," the artist explained to outlets.
Previously, they gave their winnings to the local youth club that developed their band, alongside other local music groups.
Additionally winners that year the group contributed their award to a charity for MS after a close contact was diagnosed the condition.
"The victory was ample," stated singer Small. "The money was the extra but we didn't require the bonus, because we had the honor. So our winning impacted somebody else's life."
Last week, the trust announced it had saved several small stages in the South East, by transferring them to public stewardship.
One venue in that area and the second in that location were acquired under the community ownership program, which is supported by Arts Council England and enthusiasts who buy "ownership units" in the venues.