The artist has given the entirety of his £25,000 honor cash to the Music Venues Trust, which works to save the Britain's grassroots concert spaces.
Fender was presented with the prize on mid-October as his third album the album was named the outstanding release of the past year.
The musician has decided to hand the money over to the trust, in recognition of the essential function small stages played in his initial steps.
"As an artist couldn't be pursuing what I am doing today if it hadn't been for all the shows I played around the North East, and elsewhere, when I was starting out," stated the artist. "These venues are legendary, but they are in difficulty."
Since the start of 2023, at least 150 of these spaces have permanently closed – about 16 percent of the total UK scene.
Recently, well-known musicians like Pulp, the group 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 supports independent venues.
Sam Fender also participated, generating more than £100,000 on his 2024 arena tour to assist thirty-eight grassroots venues across Britain.
The donation assisted locations that were dealing with potential shutdown due to issues arising from water damage, blazes and personal losses, as well as permit problems, conflicts and noise complaints.
Other venues received funding support in modernizing amenities and sound and lighting systems that helped artists and audiences.
"The notion that funds from performances in large arenas helps the smaller venues, where it kicks off for artists like me, is just sensible," the star has said.
The musician is among several artists to give his Mercury Prize winnings to good deeds.
When they earned the trophy in 1996 for their record the album, lead singer the singer announced that the band would donate their prize money to the non-profit the charity.
In 2002, artist the artist divided her award across a few charities, like the NSPCC and a charity for Sickle Cell.
"I also contributed a grand to my local community centre, to their classes, because I did gymnastics when I was younger and they needed new equipment," Ms Dynamite explained to a publication.
Previously, they contributed their funds to the community center that developed their band, in addition to other independent music bodies.
And 1994 winners M People gave their prize to a charity for MS after a close contact was identified with the condition.
"Winning was sufficient," remarked artist Small. "The prize was the bonus but we didn't require the cherry, because we had the honor. So our success impacted somebody else's life."
In the past week, the Music Venues Trust shared it had rescued two grassroots venues in south-east England, by bringing them into community ownership.
One venue in that area and the other in the city were bought under the Own Our Venues scheme, which is backed by the arts council and supporters who buy "shares" in the buildings.
