The star has handed over the full amount of his £25k award winnings to the MVT, which operates to save the UK's independent live music spots.
He was presented with the award on 16 October as his third album his work was chosen as the best record of the last 12 months.
He has chosen to hand the money over to the Music Venues Trust, in appreciation of the essential function small stages played in his early career.
"I personally wouldn't be doing my current career if it wasn't for all the shows I performed around the area, and elsewhere, when I was starting out," said Sam Fender. "These locations are iconic, but they are struggling."
Since the start of 2023, at least 150 of these spaces have shut down – roughly 16% of the total UK scene.
Recently, top acts such as the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its efforts to support the industry, by including a modest fee to their admission fees, which supports local stages.
Sam Fender also participated, generating in excess of £100,000 on his recent tour to support numerous small stages across the UK.
The donation assisted spaces that were facing imminent closure due to issues stemming from flooding, blazes and bereavements, as well as licensing issues, court cases and sound issues.
Other venues were granted financial assistance in improving infrastructure and sound and lighting systems that directly benefitted artists and concertgoers.
"The idea that money from concerts in major spaces supports the smaller venues, where it kicks off for performers like me, is just sensible," the star has said.
He is among several artists to give his Mercury Prize prize money to charitable organizations.
In Pulp won the award in 1996 for their record Different Class, vocalist Cocker announced that the act would donate their prize money to the organization War Child.
In 2002, artist the artist split her bounty among multiple organizations, including the NSPCC and a Sickle Cell organization.
"I also contributed a grand to Highgate Newtown, to their classes, because I trained in gymnastics when I was a child and they lacked better apparatus," the artist shared with the media.
Two years ago, Ezra Collective gave their winnings to the community center that nurtured their band, in addition to other grassroots music organisations.
Additionally the 1994 recipients the group donated their winnings to a multiple sclerosis charity after a close contact was diagnosed the illness.
"Receiving the award was ample," stated artist Heather Small. "The prize was the bonus but we didn't need the bonus, because we had the honor. So our victory touched somebody else's life."
Recently, the Music Venues Trust revealed it had saved a couple of small stages in south-east England, by placing them under public stewardship.
One venue in that area and The Croft in the city were purchased under the community ownership scheme, which is backed by a national body and music fans who buy "stakes" in the buildings.
