The artist has given the full amount of his £25k award cash to the Music Venues Trust, which operates to save the UK's small concert spaces.
He was presented with the award on October 16 as his new release his work was chosen as the top album of the previous year.
He has chosen to hand the money over to the Music Venues Trust, in appreciation of the vital role small stages played in his initial steps.
"I personally would not have achieved what I am doing today if it hadn't been for all the shows I performed around the area, and beyond, when I was beginning," said the artist. "These locations are legendary, but they are facing challenges."
Since the start of 2023, over 150 of these venues have shut down – roughly one-sixth of the whole industry in the UK.
Over the past year, well-known musicians such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its efforts to support the industry, by applying a modest fee to their ticket prices, which benefits smaller concert halls.
Fender also took part, raising more than £100,000 on his 2024 arena tour to assist numerous small stages across the UK.
The money assisted venues that were confronting imminent closure due to difficulties caused by flooding, fire incidents and bereavements, as well as permit problems, court cases and sound issues.
Other venues obtained funding support in improving amenities and sound and lighting systems that helped performers and concertgoers.
"The notion that funds from concerts in major spaces backs the independent spots, where it kicks off for artists like me, is just common sense," Sam Fender has commented.
Fender is far from the only musician to contribute his Mercury Prize winnings to worthy causes.
Back when the band received the award in the year 1996 for their album their work, vocalist Jarvis Cocker declared that the act would give their cash to the non-profit War Child.
That year, musician she divided her bounty between a few charities, including the children's charity and a Sickle Cell charity.
"Additionally, I gave a thousand pounds to my local community centre, to their classes, because I trained in gymnastics when I was younger and they needed new equipment," Ms Dynamite told the media.
In recent years, the band gave their funds to the community center that supported their act, in addition to other independent music bodies.
Additionally the 1994 recipients the group donated their award to a charity for MS after a close contact was diagnosed the disease.
"Receiving the award was quite enough," stated artist Small. "The money was the extra but we didn't need the extra, because we had the cake. So our winning affected the lives of others."
In the past week, the Music Venues Trust announced it had rescued several local spots in south-east England, by bringing them into community ownership.
The first in the city and the second in Bristol were acquired under the Own Our Venues scheme, which is backed by Arts Council England and enthusiasts who buy "ownership units" in the venues.
