The star has handed over the entirety of his £25k award cash to the Music Venues Trust, which functions to save the Britain's independent live music spots.
The star was awarded the cheque on 16 October as his third album the album was chosen as the outstanding release of the past year.
He has decided to hand the money over to the trust, in recognition of the essential function local spots fulfilled in his beginning days.
"I would not have achieved what I am doing today if it wasn't for all the performances I performed around the North East, and beyond, when I was starting out," remarked the artist. "These venues are iconic, but they are in difficulty."
Since the start of 2023, at least 150 of these venues have permanently closed – about 16 percent of the entire UK sector.
Over the past year, top acts including the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its initiatives to help venues survive, by including a small levy to their ticket costs, which supports smaller concert halls.
Sam Fender also took part, raising over £100k on his recent tour to help thirty-eight grassroots venues across Britain.
The donation assisted spaces that were facing imminent closure due to difficulties arising from flooding, blazes and bereavements, as well as regulatory hurdles, legal disputes and noise complaints.
Additional spaces were granted funding support in improving facilities and sound and lighting systems that positively impacted artists and concertgoers.
"The concept that funds from performances in large arenas supports the independent spots, where it begins for musicians like me, is just logical," Sam Fender has commented.
He is among several artists to contribute his Mercury Prize funds to charitable organizations.
When they received the prize in 1996 for their record their work, frontman Cocker declared that the band would donate their cash to the charity the charity.
In 2002, musician she split her prize across several organizations, including the NSPCC and a Sickle Cell charity.
"I also contributed a £1,000 to the center, to their gymnastics program, because I trained in gymnastics when I was growing up and they required new equipment," Ms Dynamite shared with the media.
Previously, Ezra Collective donated their funds to the local youth club that nurtured their group, as well as other grassroots music organisations.
And 1994 winners M People contributed their prize to a MS organization after a close contact was identified with the disease.
"The victory was quite enough," stated artist Heather Small. "The cash was the extra but we didn't need the cherry, because we had the cake. So our success affected somebody else's life."
Recently, the trust revealed it had saved a couple of grassroots venues in that region, by placing them under public stewardship.
The first in that area and the second in the city were acquired under the public acquisition program, which is funded by Arts Council England and enthusiasts who acquire "stakes" in the venues.
