The star has donated the entirety of his £25k honor cash to the MVT, which works to protect the UK's small concert spaces.
The star was presented with the prize on mid-October as his latest record the album was chosen as the best record of the last 12 months.
Fender has chosen to donate the funds to the Music Venues Trust, in recognition of the essential function local spots fulfilled in his beginning days.
"I wouldn't be doing this success if it weren't for all the shows I did around the North East, and further afield, when I was just getting going," stated the artist. "These spaces are iconic, but they are in difficulty."
Since the start of 2023, over 150 of these locations have permanently closed – approximately 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 backed the MVT in its efforts to support the industry, by applying a small levy to their ticket prices, which goes to help local stages.
Sam Fender also took part, generating more than £100,000 on his 2024 arena tour to assist thirty-eight grassroots venues across Britain.
The donation supported venues that were confronting imminent closure due to challenges caused by floods, fire incidents and bereavements, as well as regulatory hurdles, court cases and neighbor objections.
Some locations received funding support in upgrading infrastructure and gear that directly benefitted musicians and audiences.
"The notion that revenue from performances in large arenas supports the local stages, where it all starts for artists like me, is just logical," the star has commented.
The musician is not the first artist to contribute his Mercury Prize winnings to charitable organizations.
When Pulp earned the trophy in 1996 for their record the album, frontman the singer stated that the group would contribute their prize money to the charity War Child.
That year, artist the artist shared her award between several good causes, like the NSPCC and a Sickle Cell charity.
"And I gave a thousand pounds to Highgate Newtown, to their gymnastics program, because I trained in gymnastics when I was a child and they required new equipment," Ms Dynamite told the media.
In recent years, they contributed their funds to the community center that nurtured their group, as well as other independent music bodies.
Additionally winners that year M People contributed their award to a MS organization after a friend was found to have the condition.
"Winning was sufficient," remarked artist Heather Small. "The prize was the bonus but we could do without the bonus, because we had the main prize. So our success touched another person's life."
Recently, the trust shared it had protected several local spots in south-east England, by transferring them to community ownership.
The first in Southampton and the second in Bristol were bought under the community ownership initiative, which is funded by Arts Council England and supporters who purchase "shares" in the venues.