The star has given the entirety of his £25,000 honor cash to the MVT, which works to preserve the Britain's grassroots live music spots.
The star was given the award on mid-October as his new release the album was chosen as the best record of the previous year.
He has opted to donate the funds to the MVT, in appreciation of the crucial part grassroots venues played in his beginning days.
"I would not have achieved my current career if it hadn't been for all the gigs I played around the North East, and further afield, when I was just getting going," remarked Sam Fender. "These spaces are renowned, but they are facing challenges."
Beginning in 2023, at least 150 of these locations have permanently closed – about one-sixth of the total UK scene.
Recently, top acts including Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all backed the trust in its attempts to keep the scene afloat, by applying a minor surcharge to their ticket costs, which goes to help local stages.
He also took part, generating more than £100,000 on his 2024 arena tour to assist numerous grassroots venues across England, Scotland, and Wales.
The money supported venues that were facing potential shutdown due to difficulties arising from flooding, fire incidents and personal losses, as well as regulatory hurdles, conflicts and neighbor objections.
Additional spaces received monetary aid in improving amenities and sound and lighting systems that helped artists and audiences.
"The notion that revenue from concerts in big venues backs the local stages, where it begins for performers like me, is just sensible," Fender has commented.
He is not the first artist to contribute his Mercury Prize prize money to charitable organizations.
Back when Pulp received the trophy in the year 1996 for their release their work, frontman the singer announced that the group would donate their winnings to the organization the charity.
During 2002, rapper and singer Ms Dynamite shared her bounty among a few charities, like the NSPCC and a Sickle Cell organization.
"I also donated a £1,000 to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was growing up and they lacked better apparatus," the artist explained to the media.
Previously, Ezra Collective donated their prize money to the local youth club that supported their band, in addition to other local music groups.
Also the 1994 recipients the group gave their prize to a multiple sclerosis charity after a friend was identified with the illness.
"Winning was sufficient," said singer Small. "The prize was the extra but we didn't require the extra, because we had the honor. So our success affected the lives of others."
Recently, the MVT announced it had rescued a couple of grassroots venues in the South East, by placing them under local control.
The first in Southampton and the second in that location were acquired under the public acquisition initiative, which is backed by a national body and supporters who purchase "shares" in the buildings.