The star has given the complete sum of his £25k award cash to the Music Venues Trust, which operates to preserve the UK's small concert spaces.
Fender was given the prize on mid-October as his new release his work was named the top album of the previous year.
He has decided to give the cash to the trust, in appreciation of the essential function grassroots venues fulfilled in his early career.
"As an artist wouldn't be doing what I am doing today if it wasn't for all the shows I did around the North East, and further afield, when I was just getting going," remarked the artist. "These locations are iconic, but they are facing challenges."
Beginning in 2023, at least 150 of these venues have ceased operations – roughly 16 percent of the entire UK sector.
In the last year, top acts such as Pulp, Coldplay, Katy Perry and Sheeran have all supported the MVT in its attempts to keep the scene afloat, by applying a minor surcharge to their ticket costs, which benefits smaller concert halls.
Sam Fender also took part, raising in excess of £100,000 on his recent tour to assist 38 small stages across Britain.
The money supported spaces that were confronting imminent closure due to difficulties stemming from flooding, fire incidents and family tragedies, as well as licensing issues, court cases and noise complaints.
Additional spaces were granted financial assistance in modernizing facilities and sound and lighting systems that directly benefitted performers and fans.
"The notion that money from performances in big venues supports the smaller venues, where it begins for musicians like me, is just sensible," Sam Fender has commented.
He is among several artists to donate his Mercury Prize winnings to good deeds.
Back when they won the trophy in 1996 for their record the album, vocalist the singer declared that the act would donate their cash to the non-profit War Child.
In 2002, rapper and singer she split her award between multiple organizations, including the NSPCC and a Sickle Cell organization.
"And I gave a £1,000 to my local community centre, to their classes, because I practiced gymnastics when I was younger and they required better apparatus," she explained to the media.
Previously, they contributed their winnings to the youth organization that nurtured their act, as well as other grassroots music organisations.
Also winners that year they contributed their winnings to a MS organization after a acquaintance was diagnosed the disease.
"Winning was sufficient," remarked vocalist Heather Small. "The cash was the bonus but we could do without the extra, because we had the cake. So our winning affected the lives of others."
In the past week, the Music Venues Trust announced it had saved two local spots in the South East, by placing them under local control.
The first in Southampton and the other in that location were acquired under the Own Our Venues program, which is funded by the arts council and supporters who buy "stakes" in the venues.
