The star has handed over the full amount of his twenty-five thousand pound honor cash to the Music Venues Trust, which functions to preserve the UK's independent live music spots.
He was given the award on mid-October as his latest record the album was declared the top album of the past year.
The musician has decided to give the cash to the MVT, in acknowledgment of the crucial part grassroots venues had in his initial steps.
"I personally would not have achieved this success if it hadn't been for all the shows I performed around the North East, and beyond, when I was just getting going," said the artist. "These locations are legendary, but they are facing challenges."
Since the start of 2023, at least 150 of these spaces have permanently closed – roughly one-sixth of the total UK scene.
Recently, well-known musicians like the band Pulp, the group Coldplay, Katy Perry and Sheeran have all supported the MVT in its efforts to help venues survive, by including a small levy to their ticket costs, which goes to help smaller concert halls.
Sam Fender also joined in, generating over £100k on his 2024 arena tour to help numerous grassroots venues across the UK.
These funds assisted locations that were dealing with imminent closure due to difficulties arising from water damage, fires and personal losses, as well as licensing issues, court cases and noise complaints.
Some locations obtained funding support in improving amenities and technical equipment that directly benefitted artists and concertgoers.
"The notion that funds from shows in major spaces helps the local stages, where it kicks off for artists like me, is just common sense," Sam Fender has commented.
Fender is among several artists to contribute his Mercury Prize prize money to good deeds.
When they won the prize in 1996 for their album Different Class, vocalist Jarvis Cocker stated that the group would donate their cash to the organization War Child.
That year, musician she shared her bounty across several organizations, such as the children's charity and a Sickle Cell organization.
"And I gave a thousand pounds to the center, to their gymnastics class, because I trained in gymnastics when I was younger and they lacked updated gear," Ms Dynamite shared with outlets.
Two years ago, the band gave their funds to the local youth club that supported their group, as well as other grassroots music organisations.
Also 1994 winners they gave their prize to a multiple sclerosis charity after a close contact was diagnosed the condition.
"The victory was sufficient," stated vocalist Small. "The cash was the extra but we could do without the bonus, because we had the main prize. So our victory touched the lives of others."
Last week, the trust revealed it had saved two small stages in south-east England, by bringing them into community ownership.
One venue in the city and the other in that location were bought under the public acquisition initiative, which is funded by the arts council and music fans who purchase "stakes" in the venues.
