The star has given the full amount of his £25,000 honor cash to the Music Venues Trust, which operates to preserve the Britain's grassroots music venues.
He was awarded the prize on 16 October as his third album the album was chosen as the best record of the past year.
The musician has opted to hand the money over to the trust, in acknowledgment of the vital role local spots had in his beginning days.
"I personally would not have achieved this success if it hadn't been for all the performances I played around the region, and elsewhere, when I was just getting going," remarked Sam Fender. "These venues are iconic, but they are in difficulty."
Since the start of 2023, more than 150 of these spaces have permanently closed – about one-sixth of the entire UK sector.
Over the past year, top acts such as the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its attempts to support the industry, by adding a small levy to their admission fees, which goes to help local stages.
He also participated, collecting over £100k on his recent tour to support numerous local spots across England, Scotland, and Wales.
These funds supported venues that were facing possible closure due to challenges caused by flooding, fire incidents and personal losses, as well as licensing issues, conflicts and sound issues.
Some locations were granted financial assistance in upgrading facilities and sound and lighting systems that helped artists and concertgoers.
"The notion that funds from concerts in major spaces supports the independent spots, where it kicks off for artists like me, is just common sense," the star has said.
The musician is far from the only musician to give his Mercury Prize prize money to worthy causes.
Back when the band received the award in 1996 for their album their work, frontman Jarvis Cocker declared that the group would give their prize money to the charity War Child.
That year, musician Ms Dynamite divided her bounty between a few organizations, including the NSPCC and a charity for Sickle Cell.
"And I contributed a grand to my local community centre, to their gymnastics program, because I practiced gymnastics when I was younger and they lacked better apparatus," Ms Dynamite told outlets.
Previously, Ezra Collective contributed their prize money to the local youth club that developed their act, as well as other grassroots music organisations.
And 1994 winners the group contributed their winnings to a multiple sclerosis charity after a close contact was found to have the condition.
"The victory was ample," remarked singer the singer. "The money was the cherry on top but we didn't need the extra, because we had the honor. So our victory touched another person's life."
Recently, the Music Venues Trust announced it had saved two grassroots venues in that region, by placing them under community ownership.
One venue in that area and the other in that location were purchased under the Own Our Venues initiative, which is backed by a national body and supporters who acquire "stakes" in the buildings.
