The artist has handed over the complete sum of his twenty-five thousand pound honor cash to the MVT, which works to protect the Britain's grassroots music venues.
The star was given the prize on mid-October as his latest record the album was declared the best record of the previous year.
He has chosen to hand the money over to the Music Venues Trust, in appreciation of the vital role local spots fulfilled in his early career.
"I couldn't be pursuing this success if it hadn't been for all the shows I did around the North East, and further afield, when I was just getting going," stated Fender. "These locations are legendary, but they are in difficulty."
Beginning in 2023, over 150 of these locations have ceased operations – approximately 16 percent of the total UK scene.
Over the past year, top acts including Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its efforts to help venues survive, by adding a minor surcharge to their ticket costs, which supports independent venues.
Sam Fender also took part, collecting more than £100,000 on his live tour to help numerous local spots across Britain.
The donation helped locations that were facing possible closure due to difficulties arising from flooding, fires and personal losses, as well as regulatory hurdles, conflicts and noise complaints.
Other venues received funding support in improving infrastructure and sound and lighting systems that helped musicians and audiences.
"The idea that funds from shows in major spaces helps the independent spots, where it all starts for musicians like me, is just common sense," the star has stated.
He is far from the only musician to contribute his Mercury Prize prize money to charitable organizations.
When they received the prize in 1996 for their release Different Class, lead singer the singer declared that the band would donate their winnings to the non-profit War Child.
That year, musician Ms Dynamite split her award across a few good causes, like the NSPCC and a Sickle Cell charity.
"And I contributed a £1,000 to my local community centre, to their gymnastics class, because I practiced gymnastics when I was growing up and they needed updated gear," the artist shared with a publication.
In recent years, the band gave their winnings to the youth organization that nurtured their band, as well as other independent music bodies.
Additionally the 1994 recipients the group gave their award to a MS organization after a friend was identified with the illness.
"Winning was quite enough," remarked vocalist Heather Small. "The prize was the extra but we didn't require the bonus, because we had the main prize. So our winning touched another person's life."
Recently, the MVT shared it had saved several grassroots venues in the South East, by bringing them into public stewardship.
The Joiners in the city and The Croft in the city were purchased under the Own Our Venues initiative, which is supported by the arts council and music fans who acquire "stakes" in the properties.
