The artist has handed over the full amount of his £25k honor winnings to the MVT, which functions to protect the UK's grassroots live music spots.
He was presented with the award on mid-October as his third album his work was named the outstanding release of the past year.
The musician has chosen to give the cash to the MVT, in recognition of the crucial part small stages played in his beginning days.
"I personally would not have achieved this success if it hadn't been for all the shows I performed around the area, and beyond, when I was beginning," said Sam Fender. "These locations are iconic, but they are struggling."
Since the start of 2023, more than 150 of these locations have permanently closed – about 16% of the entire UK sector.
In the last year, well-known musicians such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its efforts to keep the scene afloat, by including a modest fee to their ticket prices, which supports local stages.
Fender also joined in, generating over £100k on his live tour to help 38 small stages across Britain.
The donation supported venues that were dealing with possible closure due to issues caused by flooding, blazes and personal losses, as well as regulatory hurdles, legal disputes and neighbor objections.
Other venues were granted funding support in upgrading facilities and gear that positively impacted artists and audiences.
"The notion that money from performances in large arenas backs the independent spots, where it all starts for artists like me, is just sensible," Fender has commented.
Fender is among several artists to donate his Mercury Prize prize money to worthy causes.
In they received the trophy in the mid-90s for their release the album, frontman Cocker stated that the band would give their cash to the non-profit War Child.
During 2002, rapper and singer she shared her prize among several good causes, like the NSPCC and a Sickle Cell charity.
"I also contributed a £1,000 to Highgate Newtown, to their gymnastics program, because I did gymnastics when I was a child and they lacked better apparatus," Ms Dynamite told a publication.
In recent years, they donated their prize money to the local youth club that developed their act, in addition to other independent music bodies.
Also the 1994 recipients they contributed their winnings to a charity for MS after a friend was diagnosed the disease.
"The victory was ample," said vocalist Heather Small. "The cash was the extra but we didn't require the bonus, because we had the main prize. So our winning touched another person's life."
Recently, the trust shared it had saved several local spots in that region, by bringing them into community ownership.
The Joiners in that area and the second in Bristol were bought under the public acquisition scheme, which is supported by a national body and enthusiasts who purchase "shares" in the properties.
