The artist has handed over the complete sum of his £25,000 honor winnings to the MVT, which functions to preserve the Britain's independent music venues.
The star was awarded the award on 16 October as his latest record the album was named the top album of the last 12 months.
He has chosen to donate the funds to the trust, in appreciation of the essential function grassroots venues played in his early career.
"As an artist wouldn't be doing what I am doing today if it wasn't for all the performances I did around the area, and elsewhere, when I was starting out," stated Sam Fender. "These locations are legendary, but they are in difficulty."
Since the start of 2023, more than 150 of these venues have shut down – about 16 percent of the entire UK sector.
Recently, well-known musicians such as the band Pulp, Coldplay, Katy Perry and Sheeran have all backed the MVT in its initiatives to support the industry, by adding a small levy to their ticket costs, which benefits independent venues.
Fender also took part, raising in excess of £100,000 on his live tour to support numerous small stages across the UK.
The donation assisted spaces that were facing imminent closure due to challenges stemming from floods, fire incidents and bereavements, as well as regulatory hurdles, court cases and neighbor objections.
Other venues were granted monetary aid in improving facilities and technical equipment that positively impacted musicians and audiences.
"The notion that funds from concerts in big venues helps the local stages, where it begins for artists like me, is just logical," Fender has said.
Fender is not the first artist to donate his Mercury Prize funds to charitable organizations.
When Pulp earned the prize in the year 1996 for their record the album, lead singer Cocker stated that the group would donate their winnings to the non-profit War Child.
In 2002, rapper and singer Ms Dynamite divided her bounty across a few good causes, such as the NSPCC and a charity for Sickle Cell.
"Additionally, I contributed a grand to Highgate Newtown, to their classes, because I practiced gymnastics when I was younger and they needed better apparatus," Ms Dynamite told the media.
In recent years, they gave their funds to the youth organization that supported their act, alongside other grassroots music organisations.
Also winners that year they contributed their award to a charity for MS after a close contact was identified with the condition.
"Receiving the award was ample," said artist the singer. "The cash was the cherry on top but we could do without the extra, because we had the cake. So our winning affected another person's life."
In the past week, the Music Venues Trust announced it had protected a couple of local spots in south-east England, by transferring them to public stewardship.
The Joiners in that area and The Croft in that location were bought under the public acquisition program, which is supported by Arts Council England and music fans who acquire "stakes" in the properties.
