The star has handed over the complete sum of his £25k award cash to the MVT, which functions to protect the UK's grassroots music venues.
The star was given the prize on October 16 as his third album the album was named the outstanding release of the last 12 months.
He has chosen to donate the funds to the Music Venues Trust, in appreciation of the vital role grassroots venues played in his beginning days.
"I wouldn't be doing my current career if it hadn't been for all the performances I did around the region, and further afield, when I was just getting going," said the artist. "These spaces are legendary, but they are in difficulty."
From early 2023 onward, at least 150 of these venues have ceased operations – approximately 16 percent of the total UK scene.
Over the past year, top acts including Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the trust in its efforts to help venues survive, by applying a modest fee to their admission fees, which goes to help local stages.
Sam Fender also joined in, generating more than £100,000 on his recent tour to help 38 local spots across the UK.
The donation assisted locations that were dealing with possible closure due to issues caused by flooding, fires and personal losses, as well as regulatory hurdles, conflicts and noise complaints.
Other venues were granted financial assistance in modernizing amenities and sound and lighting systems that helped artists and fans.
"The idea that funds from concerts in large arenas backs the independent spots, where it begins for artists like me, is just logical," Sam Fender has said.
The musician is far from the only musician to contribute his Mercury Prize prize money to good deeds.
In they received the prize in the year 1996 for their album their work, vocalist Jarvis Cocker declared that the act would contribute their winnings to the charity War Child.
That year, rapper and singer she divided her award across multiple good causes, like the children's charity and a Sickle Cell charity.
"And I contributed a £1,000 to my local community centre, to their gymnastics program, because I practiced gymnastics when I was growing up and they lacked new equipment," Ms Dynamite told outlets.
Two years ago, they contributed their winnings to the local youth club that developed their band, in addition to other grassroots music organisations.
Additionally winners that year the group donated their winnings to a charity for MS after a close contact was identified with the condition.
"The victory was sufficient," said artist Small. "The cash was the cherry on top but we could do without the extra, because we had the main prize. So our success touched the lives of others."
In the past week, the trust announced it had protected a couple of small stages in that region, by bringing them into community ownership.
The first in that area and The Croft in that location were acquired under the public acquisition program, which is supported by the arts council and enthusiasts who acquire "ownership units" in the properties.
