The artist has given the full amount of his twenty-five thousand pound award cash to the MVT, which operates to protect the United Kingdom's grassroots live music spots.
He was presented with the cheque on October 16 as his latest record People Watching was chosen as the top album of the last 12 months.
Fender has chosen to donate the funds to the Music Venues Trust, in acknowledgment of the essential function small stages had in his initial steps.
"I would not have achieved this success if it hadn't been for all the gigs I did around the area, and elsewhere, when I was starting out," said the artist. "These spaces are iconic, but they are struggling."
From early 2023 onward, at least 150 of these locations have permanently closed – roughly 16 percent of the whole industry in the UK.
Over the past year, major artists such as Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its initiatives to help venues survive, by adding a modest fee to their ticket prices, which supports smaller concert halls.
Sam Fender also joined in, generating over £100k on his 2024 arena tour to support thirty-eight local spots across Britain.
These funds assisted spaces that were confronting potential shutdown due to challenges caused by water damage, blazes and personal losses, as well as permit problems, court cases and neighbor objections.
Other venues obtained funding support in upgrading infrastructure and technical equipment that directly benefitted artists and audiences.
"The concept that money from shows in large arenas backs the smaller venues, where it kicks off for artists like me, is just common sense," Fender has commented.
He is far from the only musician to donate his Mercury Prize funds to charitable organizations.
When Pulp won the award in 1996 for their record Different Class, vocalist Jarvis Cocker declared that the group would contribute their prize money to the non-profit War Child.
That year, artist Ms Dynamite divided her award between a few organizations, such as the children's charity and a Sickle Cell organization.
"I also donated a £1,000 to the center, to their classes, because I trained in gymnastics when I was growing up and they required new equipment," she told a publication.
Previously, Ezra Collective contributed their prize money to the local youth club that supported their band, alongside other grassroots music organisations.
Also winners that year M People contributed their winnings to a charity for MS after a friend was found to have the illness.
"Receiving the award was ample," remarked singer Heather Small. "The prize was the cherry on top but we could do without the extra, because we had the main prize. So our victory affected the lives of others."
In the past week, the trust announced it had protected a couple of small stages in the South East, by placing them under public stewardship.
The first in that area and the second in Bristol were acquired under the community ownership initiative, which is supported by Arts Council England and music fans who purchase "shares" in the buildings.
