The star has given the complete sum of his £25,000 honor cash to the Music Venues Trust, which works to preserve the Britain's small live music spots.
Fender was awarded the award on mid-October as his third album People Watching was chosen as the best record of the previous year.
Fender has decided to hand the money over to the MVT, in recognition of the vital role small stages had in his early career.
"As an artist couldn't be pursuing this success if it hadn't been for all the shows I performed around the North East, and further afield, when I was beginning," said the artist. "These locations are legendary, but they are in difficulty."
Beginning in 2023, over 150 of these spaces have permanently closed – roughly 16 percent of the total UK scene.
Over the past year, well-known musicians such as the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all backed the MVT in its attempts to help venues survive, by applying a modest fee to their ticket prices, which benefits independent venues.
Sam Fender also participated, collecting over £100k on his live tour to support 38 small stages across England, Scotland, and Wales.
The donation assisted venues that were facing potential shutdown due to challenges caused by flooding, blazes and family tragedies, as well as licensing issues, court cases and noise complaints.
Some locations received funding support in upgrading amenities and gear that positively impacted musicians and concertgoers.
"The notion that revenue from shows in major spaces supports the smaller venues, where it begins for performers like me, is just sensible," Sam Fender has commented.
He is among several artists to contribute his Mercury Prize prize money to good deeds.
In the band earned the trophy in the mid-90s for their release Different Class, frontman Jarvis Cocker announced that the group would give their winnings to the organization War Child.
During 2002, rapper and singer she divided her bounty across multiple good causes, including the NSPCC and a Sickle Cell organization.
"Additionally, I gave a grand to Highgate Newtown, to their gymnastics program, because I trained in gymnastics when I was a child and they needed new equipment," the artist told outlets.
Two years ago, the band gave their prize money to the local youth club that developed their band, as well as other independent music bodies.
And winners that year the group donated their award to a charity for MS after a acquaintance was found to have the condition.
"Receiving the award was quite enough," stated vocalist the singer. "The money was the cherry on top but we didn't need the bonus, because we had the honor. So our success affected the lives of others."
Last week, the Music Venues Trust announced it had saved two local spots in south-east England, by transferring them to community ownership.
The first in Southampton and The Croft in that location were purchased under the public acquisition initiative, which is supported by a national body and enthusiasts who buy "shares" in the buildings.
