The star has donated the full amount of his £25k award cash to the Music Venues Trust, which works to protect the UK's small live music spots.
The star was awarded the prize on mid-October as his third album his work was chosen as the outstanding release of the last 12 months.
Fender has chosen to hand the money over to the MVT, in acknowledgment of the essential function local spots fulfilled in his initial steps.
"I personally would not have achieved what I am doing today if it wasn't for all the performances I did around the area, and further afield, when I was beginning," stated Fender. "These venues are iconic, but they are facing challenges."
From early 2023 onward, at least 150 of these venues have permanently closed – approximately one-sixth of the entire UK sector.
In the last year, top acts such as the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the MVT in its initiatives to keep the scene afloat, by applying a modest fee to their ticket prices, which supports smaller concert halls.
Sam Fender also participated, collecting in excess of £100,000 on his live tour to support numerous grassroots venues across the UK.
The money assisted spaces that were dealing with potential shutdown due to issues stemming from floods, blazes and bereavements, as well as permit problems, court cases and sound issues.
Some locations received funding support in improving amenities and sound and lighting systems that helped musicians and audiences.
"The notion that revenue from performances in big venues helps the smaller venues, where it all starts for artists like me, is just sensible," Fender has stated.
Fender is not the first artist to give his Mercury Prize winnings to charitable organizations.
Back when Pulp received the award in the year 1996 for their record their work, lead singer the singer stated that the group would give their cash to the non-profit War Child.
During 2002, musician the artist shared her prize between a few charities, like the NSPCC and a Sickle Cell organization.
"And I contributed a grand to the center, to their gymnastics program, because I trained in gymnastics when I was a child and they required updated gear," Ms Dynamite shared with outlets.
Previously, the band donated their winnings to the youth organization that nurtured their act, in addition to other independent music bodies.
And winners that year they contributed their winnings to a multiple sclerosis charity after a friend was identified with the illness.
"Winning was sufficient," remarked vocalist Small. "The prize was the extra but we could do without the extra, because we had the cake. So our victory impacted somebody else's life."
Last week, the MVT revealed it had rescued several local spots in that region, by bringing them into local control.
The first in Southampton and The Croft in that location were bought under the Own Our Venues program, which is backed by the arts council and music fans who purchase "stakes" in the properties.
