The star has handed over the full amount of his £25,000 award cash to the Music Venues Trust, which operates to protect the Britain's grassroots live music spots.
He was presented with the prize on mid-October as his new release his work was named the outstanding release of the last 12 months.
Fender has decided to give the cash to the trust, in recognition of the vital role local spots fulfilled in his initial steps.
"As an artist would not have achieved this success if it hadn't been for all the gigs I did around the North East, and beyond, when I was starting out," stated the artist. "These spaces are renowned, but they are facing challenges."
From early 2023 onward, at least 150 of these spaces have shut down – roughly 16% of the entire UK sector.
Over the past year, well-known musicians like Pulp, the group Coldplay, the singer Katy Perry and Sheeran have all backed the MVT in its initiatives to help venues survive, by adding a minor surcharge to their ticket prices, which benefits smaller concert halls.
Sam Fender also took part, collecting more than £100,000 on his recent tour to assist thirty-eight local spots across Britain.
The money supported spaces that were facing imminent closure due to challenges arising from flooding, fire incidents and family tragedies, as well as licensing issues, legal disputes and neighbor objections.
Some locations obtained monetary aid in modernizing amenities and sound and lighting systems that positively impacted performers and audiences.
"The notion that money from concerts in large arenas backs the smaller venues, where it kicks off for musicians like me, is just sensible," Sam Fender has commented.
The musician is far from the only musician to give his Mercury Prize winnings to charitable organizations.
Back when the band won the award in the mid-90s for their record their work, frontman Cocker declared that the group would contribute their prize money to the organization War Child.
That year, artist Ms Dynamite shared her award across several charities, like the NSPCC and a charity for Sickle Cell.
"And I donated a thousand pounds to the center, to their classes, because I practiced gymnastics when I was growing up and they needed updated gear," Ms Dynamite told a publication.
Two years ago, Ezra Collective gave their prize money to the local youth club that developed their group, as well as other local music groups.
And the 1994 recipients they contributed their award to a multiple sclerosis charity after a close contact was diagnosed the disease.
"Winning was sufficient," remarked singer Heather Small. "The cash was the extra but we could do without the bonus, because we had the main prize. So our success impacted another person's life."
In the past week, the trust shared it had rescued several local spots in that region, by transferring them to public stewardship.
One venue in Southampton and The Croft in the city were acquired under the Own Our Venues initiative, which is backed by a national body and music fans who purchase "ownership units" in the venues.
