The artist has handed over the entirety of his twenty-five thousand pound honor cash to the MVT, which works to preserve the Britain's independent live music spots.
Fender was presented with the award on 16 October as his third album the album was declared the outstanding release of the previous year.
The musician has opted to donate the funds to the MVT, in recognition of the crucial part local spots played in his early career.
"As an artist wouldn't be doing this success if it weren't for all the performances I performed around the North East, and further afield, when I was just getting going," said Sam Fender. "These spaces are iconic, but they are struggling."
Since the start of 2023, more than 150 of these locations have shut down – about 16 percent of the entire UK sector.
Over the past year, well-known musicians including Pulp, Coldplay, the singer Katy Perry and Sheeran have all supported the trust in its initiatives to help venues survive, by applying a small levy to their ticket prices, which goes to help smaller concert halls.
Sam Fender also took part, raising over £100k on his recent tour to help numerous local spots across England, Scotland, and Wales.
These funds assisted spaces that were facing potential shutdown due to difficulties caused by water damage, fire incidents and bereavements, as well as regulatory hurdles, legal disputes and noise complaints.
Some locations received funding support in modernizing facilities and technical equipment that positively impacted musicians and audiences.
"The idea that funds from shows in big venues backs the smaller venues, where it begins for performers like me, is just common sense," the star has stated.
He is far from the only musician to give his Mercury Prize prize money to good deeds.
In they earned the trophy in the year 1996 for their release Different Class, vocalist Jarvis Cocker declared that the group would donate their prize money to the non-profit the charity.
That year, rapper and singer she divided her bounty across several organizations, including the NSPCC and a Sickle Cell charity.
"And I contributed a grand to the center, to their gymnastics class, because I trained in gymnastics when I was growing up and they lacked updated gear," the artist told outlets.
In recent years, the band contributed their winnings to the local youth club that developed their group, alongside other independent music bodies.
And 1994 winners M People gave their winnings to a charity for MS after a close contact was identified with the disease.
"The victory was quite enough," remarked singer Small. "The cash was the cherry on top but we could do without the extra, because we had the honor. So our winning impacted the lives of others."
Recently, the MVT shared it had rescued a couple of local spots in south-east England, by transferring them to public stewardship.
One venue in Southampton and the second in Bristol were bought under the public acquisition program, which is supported by Arts Council England and supporters who acquire "stakes" in the buildings.
