The star has handed over the full amount of his twenty-five thousand pound honor cash to the trust for venues, which functions to protect the UK's independent music venues.
The star was presented with the award on 16 October as his latest record People Watching was chosen as the best record of the past year.
Fender has opted to donate the funds to the Music Venues Trust, in appreciation of the crucial part local spots had in his initial steps.
"As an artist wouldn't be doing my current career if it weren't for all the performances I played around the North East, and beyond, when I was beginning," remarked the artist. "These spaces are renowned, but they are in difficulty."
Beginning in 2023, at least 150 of these spaces have ceased operations – about one-sixth of the total UK scene.
In the last year, major artists including the band Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all aided the trust in its initiatives to help venues survive, by adding a minor surcharge to their ticket prices, which benefits local stages.
Sam Fender also participated, raising more than £100,000 on his 2024 arena tour to assist numerous small stages across the UK.
These funds assisted spaces that were dealing with possible closure due to challenges arising from flooding, fire incidents and family tragedies, as well as permit problems, court cases and sound issues.
Some locations received monetary aid in modernizing amenities and sound and lighting systems that helped artists and fans.
"The notion that funds from shows in big venues supports the local stages, where it all starts for musicians like me, is just sensible," the star has stated.
The musician is far from the only musician to give his Mercury Prize prize money to good deeds.
In Pulp received the trophy in the year 1996 for their album Different Class, frontman Cocker stated that the group would give their prize money to the organization War Child.
That year, artist Ms Dynamite shared her prize among a few charities, like the NSPCC and a Sickle Cell charity.
"I also contributed a thousand pounds to the center, to their gymnastics program, because I did gymnastics when I was growing up and they needed better apparatus," the artist shared with outlets.
Previously, they contributed their winnings to the youth organization that supported their band, alongside other independent music bodies.
Also 1994 winners M People donated their award to a multiple sclerosis charity after a acquaintance was identified with the illness.
"Winning was sufficient," remarked vocalist the singer. "The cash was the bonus but we could do without the bonus, because we had the cake. So our winning touched somebody else's life."
In the past week, the Music Venues Trust revealed it had saved two local spots in south-east England, by bringing them into public stewardship.
The first in the city and The Croft in that location were bought under the community ownership initiative, which is backed by a national body and music fans who buy "stakes" in the venues.
