The star has donated the complete sum of his £25,000 award cash to the Music Venues Trust, which operates to save the UK's small music venues.
Fender was presented with the cheque on October 16 as his latest record People Watching was chosen as the best record of the previous year.
He has decided to hand the money over to the Music Venues Trust, in appreciation of the vital role local spots played in his initial steps.
"As an artist wouldn't be doing what I am doing today if it weren't for all the gigs I did around the region, and further afield, when I was just getting going," stated Sam Fender. "These spaces are legendary, but they are struggling."
Beginning in 2023, more than 150 of these venues have ceased operations – roughly 16% of the entire UK sector.
Recently, top acts such as the band Pulp, Coldplay, Katy Perry and Sheeran have all backed the Music Venues Trust in its attempts to support the industry, by adding a minor surcharge to their admission fees, which goes to help smaller concert halls.
Sam Fender also joined in, raising more than £100,000 on his live tour to help thirty-eight local spots across the UK.
The money assisted spaces that were facing possible closure due to difficulties caused by water damage, fires and family tragedies, as well as regulatory hurdles, conflicts and noise complaints.
Some locations were granted financial assistance in improving facilities and gear that positively impacted performers and audiences.
"The idea that funds from concerts in big venues backs the smaller venues, where it begins for musicians like me, is just logical," Fender has commented.
Fender is among several artists to donate his Mercury Prize prize money to worthy causes.
Back when Pulp earned the prize in 1996 for their record their work, frontman Cocker announced that the band would donate their cash to the non-profit War Child.
In 2002, artist the artist shared her prize among several organizations, such as the NSPCC and a charity for Sickle Cell.
"And I gave a grand to my local community centre, to their classes, because I trained in gymnastics when I was younger and they required better apparatus," Ms Dynamite explained to the media.
In recent years, Ezra Collective donated their prize money to the local youth club that nurtured their band, in addition to other local music groups.
And the 1994 recipients M People gave their award to a MS organization after a friend was found to have the condition.
"Receiving the award was ample," said artist Heather Small. "The money was the cherry on top but we could do without the cherry, because we had the main prize. So our victory affected the lives of others."
In the past week, the Music Venues Trust shared it had rescued two small stages in the South East, by bringing them into local control.
The first in the city and The Croft in the city were acquired under the public acquisition initiative, which is funded by a national body and enthusiasts who purchase "stakes" in the properties.
