The artist has handed over the complete sum of his twenty-five thousand pound honor cash to the trust for venues, which works to save the United Kingdom's independent music venues.
He was given the award on mid-October as his new release his work was named the best record of the past year.
The musician has chosen to hand the money over to the trust, in acknowledgment of the vital role local spots played in his early career.
"I personally wouldn't be doing my current career if it weren't for all the gigs I played around the North East, and further afield, when I was starting out," remarked Sam Fender. "These locations are legendary, but they are in difficulty."
Since the start of 2023, over 150 of these venues have ceased operations – about 16% of the total UK scene.
Over the past year, major artists including Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its attempts to support the industry, by including a minor surcharge to their ticket prices, which goes to help independent venues.
He also took part, generating more than £100,000 on his live tour to support 38 small stages across the UK.
The money supported locations that were facing imminent closure due to issues arising from flooding, fire incidents and family tragedies, as well as licensing issues, legal disputes and sound issues.
Some locations received financial assistance in upgrading infrastructure and gear that directly benefitted artists and concertgoers.
"The concept that money from concerts in large arenas supports the independent spots, where it all starts for artists like me, is just sensible," the star has commented.
He is among several artists to give his Mercury Prize funds to good deeds.
Back when Pulp won the award in 1996 for their record Different Class, frontman Jarvis Cocker declared that the band would contribute their winnings to the organization the charity.
In 2002, musician the artist split her bounty between several charities, including the NSPCC and a charity for Sickle Cell.
"Additionally, I donated a grand to the center, to their gymnastics class, because I practiced gymnastics when I was younger and they required new equipment," Ms Dynamite told a publication.
Two years ago, the band gave their winnings to the local youth club that nurtured their group, in addition to other grassroots music organisations.
Also winners that year they donated their award to a charity for MS after a close contact was found to have the illness.
"Receiving the award was ample," said vocalist Small. "The cash was the bonus but we didn't require the cherry, because we had the main prize. So our victory impacted another person's life."
In the past week, the Music Venues Trust shared it had saved several small stages in south-east England, by bringing them into local control.
One venue in Southampton and the other in the city were purchased under the community ownership initiative, which is backed by the arts council and music fans who acquire "stakes" in the buildings.
