The star has given the full amount of his £25k award winnings to the Music Venues Trust, which functions to save the UK's small concert spaces.
He was given the prize on mid-October as his latest record the album was declared the best record of the last 12 months.
The musician has decided to donate the funds to the Music Venues Trust, in acknowledgment of the essential function grassroots venues fulfilled in his beginning days.
"As an artist would not have achieved this success if it weren't for all the gigs I played around the area, and elsewhere, when I was starting out," said Fender. "These spaces are renowned, but they are struggling."
Since the start of 2023, at least 150 of these locations have ceased operations – roughly 16% of the total UK scene.
In the last year, well-known musicians including the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its initiatives to support the industry, by applying a minor surcharge to their admission fees, which goes to help local stages.
Sam Fender also participated, collecting in excess of £100,000 on his live tour to help 38 local spots across England, Scotland, and Wales.
These funds assisted locations that were facing imminent closure due to issues caused by floods, fire incidents and family tragedies, as well as licensing issues, court cases and sound issues.
Additional spaces received funding support in upgrading infrastructure and technical equipment that directly benefitted artists and fans.
"The idea that revenue from performances in big venues backs the independent spots, where it begins for musicians like me, is just sensible," the star has said.
He is far from the only musician to give his Mercury Prize funds to good deeds.
Back when Pulp earned the award in the year 1996 for their release Different Class, lead singer the singer declared that the group would contribute their cash to the organization the charity.
That year, musician she shared her prize between multiple charities, like the NSPCC and a Sickle Cell charity.
"Additionally, I donated a thousand pounds to Highgate Newtown, to their gymnastics class, because I trained in gymnastics when I was growing up and they required updated gear," Ms Dynamite shared with a publication.
In recent years, they contributed their winnings to the local youth club that nurtured their band, in addition to other grassroots music organisations.
And the 1994 recipients they donated their prize to a charity for MS after a friend was found to have the illness.
"Receiving the award was ample," remarked artist Small. "The prize was the extra but we could do without the cherry, because we had the honor. So our winning affected another person's life."
Last week, the Music Venues Trust shared it had protected several grassroots venues in that region, by bringing them into community ownership.
The first in the city and the second in the city were bought under the public acquisition scheme, which is funded by the arts council and enthusiasts who buy "stakes" in the venues.
