The artist has given the entirety of his twenty-five thousand pound award cash to the MVT, which works to preserve the Britain's independent concert spaces.
He was given the award on October 16 as his new release his work was declared the top album of the past year.
Fender has chosen to hand the money over to the trust, in acknowledgment of the vital role grassroots venues had in his beginning days.
"I couldn't be pursuing my current career if it weren't for all the performances I played around the region, and beyond, when I was beginning," said Fender. "These spaces are iconic, but they are facing challenges."
Since the start of 2023, at least 150 of these locations have shut down – roughly one-sixth of the entire UK sector.
In the last year, top acts like the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its efforts to help venues survive, by adding a minor surcharge to their admission fees, which benefits local stages.
He also joined in, generating more than £100,000 on his live tour to assist thirty-eight local spots across England, Scotland, and Wales.
These funds assisted venues that were facing imminent closure due to issues caused by floods, fire incidents and bereavements, as well as permit problems, court cases and noise complaints.
Additional spaces obtained monetary aid in improving facilities and sound and lighting systems that helped musicians and audiences.
"The idea 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 said.
He is far from the only musician to give his Mercury Prize winnings to good deeds.
When Pulp won the trophy in 1996 for their release the album, lead singer Cocker declared that the group would give their prize money to the organization War Child.
In 2002, artist the artist shared her award between a few organizations, including the NSPCC and a Sickle Cell charity.
"Additionally, I donated a £1,000 to the center, to their gymnastics program, because I trained in gymnastics when I was growing up and they needed new equipment," the artist explained to the media.
In recent years, Ezra Collective gave their prize money to the local youth club that supported their band, in addition to other grassroots music organisations.
Additionally winners that year M People gave their winnings to a multiple sclerosis charity after a close contact was diagnosed the illness.
"The victory was ample," remarked vocalist Small. "The money was the cherry on top but we didn't need the cherry, because we had the main prize. So our winning affected the lives of others."
Recently, the Music Venues Trust revealed it had rescued a couple of small stages in south-east England, by bringing them into public stewardship.
The Joiners in Southampton and the other in that location were purchased under the Own Our Venues initiative, which is funded by a national body and music fans who buy "stakes" in the buildings.