The artist has given the full amount of his £25,000 honor cash to the Music Venues Trust, which works to preserve the United Kingdom's independent concert spaces.
He was given the cheque on 16 October as his new release the album was declared the top album of the past year.
Fender has chosen to give the cash to the Music Venues Trust, in recognition of the vital role local spots played in his initial steps.
"As an artist couldn't be pursuing my current career if it hadn't been for all the performances I played around the region, and further afield, when I was beginning," said the artist. "These spaces are renowned, but they are in difficulty."
Beginning in 2023, more than 150 of these locations have shut down – approximately one-sixth of the total UK scene.
Recently, top acts like Pulp, Coldplay, Katy Perry and Sheeran have all supported the MVT in its efforts to keep the scene afloat, by adding a modest fee to their ticket costs, which supports independent venues.
Sam Fender also joined in, collecting more than £100,000 on his live tour to help thirty-eight grassroots venues across England, Scotland, and Wales.
The donation helped locations that were dealing with possible closure due to challenges arising from water damage, fire incidents and bereavements, as well as permit problems, legal disputes and sound issues.
Additional spaces were granted funding support in improving infrastructure and gear that directly benefitted musicians and fans.
"The concept that money from performances in big venues supports the smaller venues, where it begins for musicians like me, is just logical," the star has stated.
He is not the first artist to give his Mercury Prize winnings to good deeds.
When Pulp received the award in 1996 for their album the album, frontman Cocker announced that the band would give their cash to the organization the charity.
During 2002, rapper and singer the artist divided her prize between multiple charities, including the NSPCC and a Sickle Cell charity.
"And I gave a £1,000 to my local community centre, to their classes, because I practiced gymnastics when I was younger and they lacked updated gear," Ms Dynamite told a publication.
In recent years, they gave their prize money to the local youth club that nurtured their band, in addition to other independent music bodies.
Also winners that year the group contributed their award to a multiple sclerosis charity after a close contact was diagnosed the condition.
"The victory was ample," remarked artist the singer. "The prize was the cherry on top but we didn't need the cherry, because we had the honor. So our success touched somebody else's life."
Last week, the trust revealed it had saved several small stages in south-east England, by bringing them into local control.
The first in the city and The Croft in the city were acquired under the public acquisition initiative, which is funded by Arts Council England and supporters who acquire "shares" in the buildings.
