The artist has given the entirety of his £25,000 honor winnings to the Music Venues Trust, which operates to protect the United Kingdom's grassroots concert spaces.
He was presented with the award on mid-October as his new release his work was chosen as the top album of the previous year.
The musician has decided to donate the funds to the MVT, in acknowledgment of the essential function grassroots venues played in his beginning days.
"I couldn't be pursuing this success if it wasn't for all the gigs I performed around the North East, and further afield, when I was just getting going," remarked Fender. "These venues are legendary, but they are in difficulty."
From early 2023 onward, at least 150 of these spaces have ceased operations – approximately 16 percent of the entire UK sector.
In the last year, top acts including the band Pulp, Coldplay, Katy Perry and Sheeran have all supported the MVT in its efforts to help venues survive, by including a minor surcharge to their ticket prices, which goes to help independent venues.
Fender also joined in, raising more than £100,000 on his live tour to support numerous grassroots venues across Britain.
The money helped locations that were confronting potential shutdown due to challenges stemming from water damage, fires and bereavements, as well as permit problems, legal disputes and neighbor objections.
Some locations obtained monetary aid in upgrading facilities and technical equipment that positively impacted artists and fans.
"The notion that funds from concerts in big venues supports the independent spots, where it kicks off for musicians like me, is just logical," Sam Fender has commented.
He is among several artists to donate his Mercury Prize funds to charitable organizations.
When they earned the award in the mid-90s for their album Different Class, frontman Jarvis Cocker announced that the group would donate their cash to the organization War Child.
During 2002, artist she split her prize across several good causes, including the NSPCC and a Sickle Cell organization.
"And I donated a £1,000 to the center, to their classes, because I trained in gymnastics when I was a child and they needed updated gear," the artist shared with outlets.
Previously, Ezra Collective gave their winnings to the youth organization that developed their band, alongside other grassroots music organisations.
Additionally winners that year the group gave their winnings to a charity for MS after a friend was found to have the illness.
"Receiving the award was sufficient," said artist Small. "The money was the bonus but we didn't need the cherry, because we had the main prize. So our victory impacted the lives of others."
Recently, the MVT announced it had protected a couple of local spots in south-east England, by transferring them to public stewardship.
The first in that area and The Croft in that location were acquired under the Own Our Venues scheme, which is supported by a national body and enthusiasts who acquire "stakes" in the venues.