The artist has given the complete sum of his £25,000 honor cash to the Music Venues Trust, which operates to preserve the UK's grassroots concert spaces.
The star was given the cheque on 16 October as his new release his work was declared the outstanding release of the last 12 months.
Fender has opted to donate the funds to the trust, in acknowledgment of the vital role small stages had in his early career.
"As an artist would not have achieved my current career if it hadn't been for all the performances I played around the area, and beyond, when I was just getting going," remarked Fender. "These spaces are legendary, but they are facing challenges."
Since the start of 2023, over 150 of these venues have ceased operations – roughly 16 percent of the total UK scene.
In the last year, well-known musicians like Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all backed the trust in its attempts to keep the scene afloat, by adding a minor surcharge to their ticket prices, which benefits smaller concert halls.
Sam Fender also joined in, raising more than £100,000 on his recent tour to support numerous local spots across Britain.
These funds helped locations that were dealing with imminent closure due to challenges arising from floods, blazes and family tragedies, as well as licensing issues, legal disputes and neighbor objections.
Other venues obtained monetary aid in improving infrastructure and technical equipment that directly benefitted artists and audiences.
"The concept that money from concerts in big venues backs the local stages, where it kicks off for musicians like me, is just common sense," the star has stated.
He is not the first artist to give his Mercury Prize funds to charitable organizations.
Back when Pulp won the trophy in 1996 for their album their work, lead singer Jarvis Cocker declared that the band would contribute their cash to the charity the charity.
That year, musician Ms Dynamite shared her award across several good causes, including the NSPCC and a Sickle Cell charity.
"Additionally, I donated a grand to Highgate Newtown, to their gymnastics class, because I practiced gymnastics when I was growing up and they required updated gear," the artist explained to a publication.
In recent years, Ezra Collective gave their winnings to the local youth club that supported their act, as well as other grassroots music organisations.
Additionally 1994 winners the group donated their award to a MS organization after a acquaintance was diagnosed the disease.
"Winning was ample," stated artist Small. "The cash was the bonus but we could do without the extra, because we had the main prize. So our winning impacted the lives of others."
Last week, the MVT revealed it had saved a couple of local spots in south-east England, by placing them under public stewardship.
The Joiners in Southampton and the second in Bristol were bought under the Own Our Venues initiative, which is backed by Arts Council England and supporters who acquire "ownership units" in the buildings.
