The artist has donated the full amount of his £25,000 honor winnings to the Music Venues Trust, which functions to protect the Britain's grassroots concert spaces.
He was awarded the prize on mid-October as his new release his work was named the best record of the previous year.
The musician has chosen to donate the funds to the MVT, in acknowledgment of the crucial part local spots fulfilled in his beginning days.
"As an artist wouldn't be doing this success if it weren't for all the gigs I performed around the area, and beyond, when I was starting out," said Fender. "These locations are iconic, but they are facing challenges."
Beginning in 2023, over 150 of these spaces have shut down – approximately 16 percent of the total UK scene.
In the last year, top acts like Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its initiatives to help venues survive, by applying a modest fee to their ticket prices, which supports local stages.
Sam Fender also participated, raising over £100k on his recent tour to support thirty-eight small stages across Britain.
The donation helped spaces that were confronting possible closure due to challenges arising from floods, blazes and bereavements, as well as permit problems, conflicts and sound issues.
Additional spaces received financial assistance in improving infrastructure and technical equipment that positively impacted performers and fans.
"The concept that money from concerts in large arenas backs the local stages, where it kicks off for musicians like me, is just logical," Fender has said.
Fender is among several artists to give his Mercury Prize winnings to worthy causes.
In the band earned the prize in the year 1996 for their release the album, lead singer Cocker stated that the band would give their cash to the organization War Child.
That year, musician Ms Dynamite divided her prize among multiple organizations, like the children's charity and a Sickle Cell charity.
"I also donated a £1,000 to the center, to their classes, because I practiced gymnastics when I was a child and they lacked updated gear," the artist told a publication.
In recent years, Ezra Collective contributed their prize money to the community center that supported their band, as well as other grassroots music organisations.
Additionally winners that year the group contributed their award to a charity for MS after a close contact was diagnosed the illness.
"Receiving the award was ample," stated vocalist Heather Small. "The cash was the extra but we didn't need the bonus, because we had the main prize. So our success affected somebody else's life."
Last week, the MVT revealed it had protected two small stages in south-east England, by transferring them to local control.
The first in the city and the other in that location were bought under the community ownership initiative, which is funded by Arts Council England and supporters who buy "shares" in the venues.
