The star has handed over the full amount of his £25k honor cash to the MVT, which works to save the United Kingdom's small music venues.
He was awarded the prize on 16 October as his new release People Watching was chosen as the top album of the last 12 months.
The musician has decided to give the cash to the Music Venues Trust, in recognition of the crucial part local spots had in his beginning days.
"As an artist would not have achieved my current career if it wasn't for all the performances I played around the North East, and beyond, when I was starting out," stated Sam Fender. "These venues are legendary, but they are struggling."
Beginning in 2023, at least 150 of these locations have ceased operations – about one-sixth of the total UK scene.
In the last year, major artists like Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the trust in its attempts to help venues survive, by adding a modest fee to their ticket prices, which supports smaller concert halls.
Sam Fender also joined in, collecting more than £100,000 on his 2024 arena tour to help thirty-eight local spots across England, Scotland, and Wales.
The donation assisted spaces that were confronting potential shutdown due to difficulties arising from water damage, fires and personal losses, as well as permit problems, conflicts and noise complaints.
Additional spaces received funding support in upgrading amenities and gear that positively impacted musicians and audiences.
"The idea that money from concerts in big venues supports the local stages, where it begins for artists like me, is just common sense," the star has said.
Fender is among several artists to give his Mercury Prize prize money to good deeds.
Back when they received the trophy in the year 1996 for their record the album, lead singer Cocker announced that the group would contribute their cash to the organization the charity.
In 2002, musician the artist divided her prize across a few charities, like the NSPCC and a Sickle Cell organization.
"Additionally, I gave a thousand pounds to the center, to their classes, because I did gymnastics when I was younger and they required better apparatus," Ms Dynamite shared with outlets.
In recent years, they contributed their winnings to the local youth club that developed their band, alongside other independent music bodies.
Also the 1994 recipients the group contributed their award to a charity for MS after a close contact was diagnosed the illness.
"Receiving the award was sufficient," stated vocalist the singer. "The cash was the cherry on top but we didn't need the extra, because we had the main prize. So our victory affected another person's life."
Recently, the Music Venues Trust shared it had protected a couple of small stages in south-east England, by bringing them into community ownership.
The Joiners in the city and The Croft in that location were acquired under the community ownership scheme, which is funded by a national body and enthusiasts who purchase "shares" in the venues.
