The star has donated the complete sum of his £25,000 award cash to the Music Venues Trust, which operates to preserve the UK's independent concert spaces.
He was awarded the cheque on mid-October as his third album People Watching was chosen as the top album of the last 12 months.
Fender has decided to give the cash to the Music Venues Trust, in appreciation of the crucial part local spots fulfilled in his initial steps.
"I wouldn't be doing this success if it wasn't for all the shows I did around the area, and further afield, when I was starting out," remarked the artist. "These locations are renowned, but they are in difficulty."
Since the start of 2023, at least 150 of these spaces have permanently closed – approximately 16% of the whole industry in the UK.
Over the past year, major artists such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the trust in its attempts to help venues survive, by including a small levy to their ticket costs, which benefits independent venues.
Sam Fender also took part, collecting over £100k on his recent tour to assist 38 local spots across Britain.
These funds supported spaces that were confronting potential shutdown due to issues stemming from water damage, blazes and family tragedies, as well as permit problems, court cases and noise complaints.
Some locations received funding support in modernizing facilities and sound and lighting systems that helped artists and fans.
"The idea that revenue from performances in major spaces helps the independent spots, where it all starts for artists like me, is just common sense," the star has said.
The musician is among several artists to give his Mercury Prize funds to charitable organizations.
When Pulp received the prize in 1996 for their album Different Class, lead singer the singer announced that the act would donate their prize money to the organization War Child.
During 2002, artist the artist split her bounty among a few organizations, such as the NSPCC and a charity for Sickle Cell.
"And I gave a £1,000 to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was a child and they lacked updated gear," Ms Dynamite explained to outlets.
Two years ago, the band contributed their winnings to the local youth club that developed their act, alongside other grassroots music organisations.
Additionally the 1994 recipients they donated their winnings to a multiple sclerosis charity after a close contact was identified with the condition.
"Winning was ample," stated vocalist Small. "The prize was the extra but we didn't need the extra, because we had the main prize. So our winning affected the lives of others."
In the past week, the trust revealed it had rescued a couple of grassroots venues in that region, by bringing them into community ownership.
The first in Southampton and the other in Bristol were bought under the Own Our Venues program, which is supported by the arts council and supporters who buy "ownership units" in the venues.
