The artist has given the full amount of his £25k honor cash to the Music Venues Trust, which works to preserve the United Kingdom's small concert spaces.
The star was presented with the prize on 16 October as his new release People Watching was named the outstanding release of the past year.
He has opted to hand the money over to the Music Venues Trust, in appreciation of the essential function grassroots venues had in his early career.
"I personally would not have achieved my current career if it hadn't been for all the shows I did around the area, and further afield, when I was beginning," remarked the artist. "These spaces are renowned, but they are in difficulty."
Since the start of 2023, more than 150 of these locations have shut down – roughly 16% of the whole industry in the UK.
Recently, well-known musicians like the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the trust in its initiatives to help venues survive, by including a modest fee to their admission fees, which benefits smaller concert halls.
He also participated, collecting over £100k on his 2024 arena tour to help thirty-eight local spots across Britain.
The donation supported locations that were facing possible closure due to difficulties arising from flooding, blazes and personal losses, as well as permit problems, conflicts and neighbor objections.
Other venues obtained monetary aid in improving amenities and sound and lighting systems that positively impacted performers and fans.
"The idea that money from performances in large arenas backs the smaller venues, where it begins for artists like me, is just common sense," Sam Fender has commented.
Fender is among several artists to give his Mercury Prize winnings to worthy causes.
Back when they won the trophy in the mid-90s for their album Different Class, frontman the singer declared that the group would give their winnings to the charity War Child.
That year, artist Ms Dynamite divided her prize across several organizations, like the NSPCC and a Sickle Cell charity.
"I also donated a thousand pounds to my local community centre, to their gymnastics class, because I trained in gymnastics when I was younger and they lacked updated gear," Ms Dynamite explained to outlets.
In recent years, Ezra Collective donated their funds to the youth organization that nurtured their group, in addition to other independent music bodies.
Also the 1994 recipients M People contributed their prize to a multiple sclerosis charity after a close contact was identified with the illness.
"Receiving the award was quite enough," said singer the singer. "The cash was the cherry on top but we didn't need the cherry, because we had the honor. So our success affected somebody else's life."
In the past week, the MVT shared it had saved several grassroots venues in the South East, by transferring them to public stewardship.
One venue in Southampton and the other in the city were bought under the Own Our Venues program, which is backed by Arts Council England and music fans who purchase "stakes" in the properties.
