The star has handed over the full amount of his twenty-five thousand pound award cash to the MVT, which operates to preserve the Britain's small live music spots.
He was presented with the award on mid-October as his new release People Watching was named the outstanding release of the previous year.
Fender has opted to give the cash to the MVT, in recognition of the crucial part local spots had in his early career.
"As an artist wouldn't be doing this success if it hadn't been for all the performances I played around the North East, and elsewhere, when I was starting out," remarked the artist. "These spaces are renowned, but they are facing challenges."
Since the start of 2023, at least 150 of these locations have shut down – approximately one-sixth of the total UK scene.
Over the past year, top acts including Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all supported the trust in its attempts to help venues survive, by applying a small levy to their ticket prices, which benefits smaller concert halls.
Sam Fender also joined in, collecting over £100k on his recent tour to help 38 small stages across Britain.
These funds supported locations that were confronting imminent closure due to difficulties caused by floods, blazes and personal losses, as well as regulatory hurdles, legal disputes and noise complaints.
Other venues were granted monetary aid in modernizing amenities and technical equipment that positively impacted artists and audiences.
"The concept that money from shows in major spaces supports the local stages, where it all starts for artists like me, is just common sense," the star has said.
He is far from the only musician to give his Mercury Prize prize money to charitable organizations.
Back when Pulp received the trophy in the mid-90s for their release their work, frontman the singer stated that the group would contribute their prize money to the charity War Child.
That year, musician the artist shared her bounty across a few charities, like the children's charity and a charity for Sickle Cell.
"And I donated a thousand pounds to my local community centre, to their gymnastics program, because I practiced gymnastics when I was a child and they needed new equipment," she told a publication.
Two years ago, Ezra Collective contributed their funds to the youth organization that developed their band, alongside other independent music bodies.
Also 1994 winners the group donated their prize to a charity for MS after a friend was diagnosed the disease.
"Winning was ample," stated singer Heather Small. "The cash was the bonus but we didn't require the bonus, because we had the honor. So our success affected somebody else's life."
In the past week, the MVT revealed it had rescued a couple of small stages in that region, by placing them under community ownership.
One venue in the city and the second in that location were bought under the public acquisition program, which is funded by a national body and enthusiasts who purchase "stakes" in the venues.