The star has handed over the complete sum of his £25k honor cash to the MVT, which works to protect the Britain's small live music spots.
The star was awarded the prize on October 16 as his third album his work was named the outstanding release of the past year.
Fender has chosen to donate the funds to the MVT, in recognition of the crucial part small stages fulfilled in his beginning days.
"I personally couldn't be pursuing what I am doing today if it wasn't for all the shows I did around the North East, and beyond, when I was beginning," remarked Sam Fender. "These venues are legendary, but they are struggling."
Since the start of 2023, at least 150 of these spaces have permanently closed – approximately 16% of the whole industry in the UK.
Over the past year, top acts including Pulp, Coldplay, the singer Katy Perry and Sheeran have all backed the trust in its attempts to keep the scene afloat, by applying a minor surcharge to their ticket prices, which benefits independent venues.
Sam Fender also participated, generating over £100k on his 2024 arena tour to assist thirty-eight local spots across Britain.
These funds helped spaces that were confronting imminent closure due to issues caused by water damage, fire incidents and bereavements, as well as permit problems, legal disputes and noise complaints.
Additional spaces were granted funding support in upgrading amenities and technical equipment that positively impacted musicians and audiences.
"The concept that funds from shows in big venues helps the smaller venues, where it all starts for performers like me, is just sensible," the star has commented.
The musician is among several artists to contribute his Mercury Prize funds to worthy causes.
Back when Pulp earned the prize in 1996 for their record Different Class, vocalist Cocker announced that the group would give their winnings to the organization the charity.
That year, rapper and singer the artist shared her prize among several good causes, such as the NSPCC and a charity for Sickle Cell.
"Additionally, I contributed a grand to my local community centre, to their gymnastics class, because I trained in gymnastics when I was growing up and they needed updated gear," she explained to the media.
In recent years, they donated their funds to the youth organization that supported their act, as well as other local music groups.
And the 1994 recipients they gave their award to a charity for MS after a close contact was diagnosed the condition.
"Winning was quite enough," said singer Heather Small. "The money was the extra but we didn't require the bonus, because we had the main prize. So our winning impacted another person's life."
In the past week, the MVT revealed it had protected two small stages in the South East, by transferring them to community ownership.
The first in the city and the second in that location were acquired under the community ownership initiative, which is backed by a national body and supporters who buy "shares" in the venues.
