The star has donated the full amount of his £25,000 award cash to the MVT, which operates to save the UK's independent live music spots.
Fender was presented with the award on mid-October as his new release the album was chosen as the best record of the previous year.
The musician has chosen to donate the funds to the MVT, in appreciation of the essential function small stages played in his early career.
"As an artist wouldn't be doing what I am doing today if it weren't for all the gigs I played around the area, and elsewhere, when I was just getting going," said Sam Fender. "These spaces are legendary, but they are struggling."
From early 2023 onward, at least 150 of these spaces have permanently closed – about one-sixth of the whole industry in the UK.
In the last year, major artists like the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its initiatives to support the industry, by adding a modest fee to their ticket prices, which goes to help local stages.
He also participated, raising over £100k on his recent tour to assist numerous small stages across the UK.
The donation helped venues that were dealing with potential shutdown due to difficulties arising from floods, fire incidents and family tragedies, as well as permit problems, conflicts and noise complaints.
Other venues received financial assistance in improving facilities and technical equipment that helped performers and audiences.
"The notion that funds from performances in large arenas helps the independent spots, where it kicks off for performers 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 the band earned the prize in 1996 for their record their work, frontman Cocker stated that the act would donate their winnings to the organization War Child.
In 2002, rapper and singer she split her bounty across several organizations, such as the children's charity and a Sickle Cell organization.
"And I donated a thousand pounds to my local community centre, to their gymnastics program, because I trained in gymnastics when I was a child and they needed better apparatus," Ms Dynamite told outlets.
In recent years, Ezra Collective donated their prize money to the local youth club that nurtured their group, alongside other local music groups.
Additionally 1994 winners they gave their prize to a charity for MS after a acquaintance was found to have the disease.
"Winning was quite enough," said artist Heather Small. "The money was the cherry on top but we didn't need the bonus, because we had the honor. So our victory impacted another person's life."
Recently, the trust revealed it had saved two local spots in that region, by bringing them into local control.
The Joiners in Southampton and The Croft in the city were acquired under the community ownership initiative, which is backed by a national body and enthusiasts who purchase "shares" in the buildings.
