The artist has given the full amount of his £25k honor cash to the MVT, which operates to protect the UK's independent concert spaces.
Fender was awarded the award on 16 October as his third album the album was named the best record of the previous year.
The musician has opted to donate the funds to the Music Venues Trust, in recognition of the crucial part small stages fulfilled in his beginning days.
"As an artist would not have achieved this success if it wasn't for all the gigs I performed around the area, and further afield, when I was just getting going," stated Fender. "These venues are renowned, but they are struggling."
Since the start of 2023, more than 150 of these spaces have permanently closed – roughly 16% of the entire UK sector.
Recently, major artists such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its initiatives to support the industry, by including a minor surcharge to their ticket costs, which benefits independent venues.
He also took part, collecting more than £100,000 on his live tour to assist numerous local spots across England, Scotland, and Wales.
These funds helped venues that were facing possible closure due to difficulties caused by floods, blazes and bereavements, as well as regulatory hurdles, conflicts and sound issues.
Other venues obtained funding support in modernizing amenities and technical equipment that helped performers and concertgoers.
"The concept that money from performances in major spaces supports the independent spots, where it all starts for musicians like me, is just common sense," Sam Fender has stated.
The musician is not the first artist to give his Mercury Prize funds to charitable organizations.
When Pulp earned the prize in the mid-90s for their release Different Class, vocalist the singer stated that the band would give their prize money to the organization War Child.
In 2002, musician she shared her award among multiple organizations, like the NSPCC and a charity for Sickle Cell.
"I also gave a £1,000 to the center, to their gymnastics class, because I trained in gymnastics when I was younger and they lacked updated gear," she explained to the media.
Previously, they contributed their funds to the local youth club that developed their band, as well as other local music groups.
Additionally the 1994 recipients the group contributed their winnings to a MS organization after a acquaintance was diagnosed the condition.
"The victory was quite enough," stated singer Small. "The money was the cherry on top but we didn't need the cherry, because we had the honor. So our winning touched the lives of others."
In the past week, the trust revealed it had rescued two small stages in south-east England, by bringing them into community ownership.
The Joiners in the city and the other in Bristol were bought under the Own Our Venues scheme, which is supported by Arts Council England and music fans who acquire "stakes" in the properties.
