The artist has given the entirety of his £25,000 award winnings to the Music Venues Trust, which works to preserve the UK's small music venues.
The star was given the cheque on mid-October as his third album the album was named the best record of the last 12 months.
He has opted to hand the money over to the Music Venues Trust, in appreciation of the vital role small stages played in his initial steps.
"I would not have achieved what I am doing today if it weren't for all the performances I did around the North East, and further afield, when I was starting out," said Fender. "These venues are renowned, but they are in difficulty."
Beginning in 2023, more than 150 of these spaces have ceased operations – roughly 16% of the whole industry in the UK.
Recently, major artists including the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its initiatives to support the industry, by adding a minor surcharge to their ticket costs, which goes to help local stages.
Sam Fender also joined in, generating more than £100,000 on his live tour to help 38 local spots across the UK.
The money supported venues that were confronting imminent closure due to challenges arising from flooding, fires and family tragedies, as well as permit problems, conflicts and neighbor objections.
Some locations were granted financial assistance in upgrading infrastructure and technical equipment that helped musicians and fans.
"The idea that funds from performances in big venues helps the smaller venues, where it kicks off for musicians like me, is just sensible," Fender has commented.
Fender is not the first artist to give his Mercury Prize prize money to worthy causes.
Back when the band earned the prize in the year 1996 for their release the album, vocalist the singer stated that the band would give their cash to the organization War Child.
That year, musician she split her award among multiple organizations, including the NSPCC and a charity for Sickle Cell.
"And I donated a grand to Highgate Newtown, to their gymnastics class, because I trained in gymnastics when I was growing up and they required new equipment," she explained to outlets.
Two years ago, Ezra Collective contributed their funds to the community center that supported their group, alongside other independent music bodies.
Additionally 1994 winners the group contributed their award to a MS organization after a close contact was found to have the condition.
"The victory was ample," said singer Heather Small. "The cash was the extra but we didn't require the bonus, because we had the cake. So our victory affected the lives of others."
In the past week, the Music Venues Trust shared it had protected a couple of small stages in south-east England, by placing them under community ownership.
One venue in Southampton and The Croft in that location were bought under the public acquisition scheme, which is supported by the arts council and supporters who buy "ownership units" in the venues.
