The artist has handed over the complete sum of his £25,000 award cash to the Music Venues Trust, which works to preserve the Britain's small live music spots.
The star was presented with the prize on 16 October as his third album the album was chosen as the outstanding release of the last 12 months.
He has decided to hand the money over to the MVT, in recognition of the vital role local spots fulfilled in his initial steps.
"As an artist wouldn't be doing my current career if it wasn't for all the gigs I played around the area, and beyond, when I was just getting going," stated the artist. "These locations are iconic, but they are in difficulty."
Since the start of 2023, at least 150 of these spaces have ceased operations – approximately one-sixth of the total UK scene.
Over the past year, major artists such as the band Pulp, the group Coldplay, Katy Perry and Sheeran have all supported the Music Venues Trust in its initiatives to help venues survive, by adding a modest fee to their ticket costs, which supports smaller concert halls.
He also took part, collecting over £100k on his live tour to support thirty-eight small stages across Britain.
These funds assisted spaces that were confronting possible closure due to issues arising from water damage, blazes and personal losses, as well as regulatory hurdles, court cases and neighbor objections.
Other venues received monetary aid in modernizing infrastructure and technical equipment that helped artists and fans.
"The notion that revenue from shows in big venues helps the independent spots, where it kicks off for artists like me, is just logical," Sam Fender has commented.
The musician is among several artists to donate his Mercury Prize prize money to good deeds.
In Pulp earned the trophy in 1996 for their release their work, lead singer Cocker stated that the band would donate their cash to the charity War Child.
That year, musician the artist divided her prize across several organizations, including the NSPCC and a Sickle Cell organization.
"Additionally, I donated a £1,000 to my local community centre, to their classes, because I trained in gymnastics when I was younger and they needed better apparatus," Ms Dynamite shared with a publication.
In recent years, they gave their funds to the community center that supported their group, in addition to other independent music bodies.
And winners that year they contributed their award to a MS organization after a close contact was identified with the illness.
"The victory was ample," said singer Heather Small. "The money was the extra but we could do without the cherry, because we had the cake. So our victory impacted somebody else's life."
In the past week, the Music Venues Trust shared it had saved two small stages in the South East, by bringing them into local control.
The first in Southampton and the other in that location were purchased under the Own Our Venues initiative, which is supported by Arts Council England and enthusiasts who buy "shares" in the venues.