The artist has handed over the complete sum of his £25,000 award cash to the Music Venues Trust, which works to protect the UK's small music venues.
The star was presented with the prize on mid-October as his new release People Watching was named the top album of the previous year.
He has chosen to donate the funds to the Music Venues Trust, in appreciation of the vital role small stages fulfilled in his early career.
"I personally wouldn't be doing my current career if it wasn't for all the gigs I performed around the area, and further afield, when I was starting out," stated Sam Fender. "These locations are iconic, but they are in difficulty."
Since the start of 2023, over 150 of these spaces have permanently closed – about 16% of the entire UK sector.
Recently, top acts like Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its efforts to support the industry, by adding a modest fee to their ticket costs, which benefits smaller concert halls.
Fender also participated, collecting more than £100,000 on his 2024 arena tour to help numerous local spots across England, Scotland, and Wales.
These funds supported venues that were dealing with potential shutdown due to challenges arising from floods, fires and bereavements, as well as licensing issues, legal disputes and sound issues.
Other venues obtained funding support in improving amenities and sound and lighting systems that helped performers and concertgoers.
"The concept that funds from concerts in major spaces supports the smaller venues, where it all starts for artists like me, is just logical," Sam Fender has stated.
Fender is far from the only musician to contribute his Mercury Prize prize money to charitable organizations.
In the band received the award in 1996 for their album the album, frontman the singer stated that the act would give their cash to the organization War Child.
In 2002, artist Ms Dynamite shared her award between a few organizations, like the NSPCC and a Sickle Cell charity.
"And I donated a thousand pounds to my local community centre, to their gymnastics program, because I did gymnastics when I was growing up and they required better apparatus," she explained to the media.
Two years ago, they contributed their funds to the community center that supported their group, alongside other local music groups.
Additionally the 1994 recipients the group gave their prize to a charity for MS after a close contact was found to have the illness.
"Winning was sufficient," said artist Small. "The money was the bonus but we didn't need the bonus, because we had the cake. So our success impacted somebody else's life."
In the past week, the Music Venues Trust shared it had rescued two small stages in the South East, by bringing them into public stewardship.
The Joiners in that area and the second in Bristol were bought under the public acquisition initiative, which is funded by Arts Council England and supporters who acquire "ownership units" in the properties.
