The star has handed over the entirety of his £25k honor winnings to the trust for venues, which works to protect the United Kingdom's independent concert spaces.
He was given the award on mid-October 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 Music Venues Trust, in appreciation of the essential function small stages played in his initial steps.
"I wouldn't be doing my current career if it wasn't for all the shows I performed around the North East, and further afield, when I was just getting going," remarked Fender. "These spaces are iconic, but they are facing challenges."
Since the start of 2023, over 150 of these locations have ceased operations – roughly 16% of the total UK scene.
Over the past year, well-known musicians such as the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its efforts to support the industry, by adding a modest fee to their ticket costs, which goes to help smaller concert halls.
Sam Fender also participated, collecting in excess of £100,000 on his live tour to help thirty-eight grassroots venues across England, Scotland, and Wales.
These funds supported venues that were confronting potential shutdown due to challenges stemming from flooding, fires and personal losses, as well as permit problems, court cases and neighbor objections.
Additional spaces received funding support in improving infrastructure and sound and lighting systems that directly benefitted artists and fans.
"The idea that funds from concerts in big venues helps the smaller venues, where it kicks off for musicians like me, is just logical," Sam Fender has commented.
He is far from the only musician to give his Mercury Prize winnings to good deeds.
Back when they earned the prize in the year 1996 for their record the album, vocalist the singer announced that the act would give their cash to the organization War Child.
That year, musician Ms Dynamite divided her award across several good causes, including the children's charity and a Sickle Cell organization.
"I also donated a thousand pounds to Highgate Newtown, to their gymnastics class, because I practiced gymnastics when I was younger and they required better apparatus," the artist shared with the media.
In recent years, they gave their winnings to the local youth club that developed their act, as well as other independent music bodies.
And winners that year they donated their winnings to a multiple sclerosis charity after a close contact was identified with the disease.
"Winning was sufficient," remarked artist the singer. "The money was the cherry on top but we didn't require the extra, because we had the main prize. So our victory affected another person's life."
Last week, the Music Venues Trust revealed it had protected a couple of small stages in south-east England, by transferring them to community ownership.
The first in the city and The Croft in Bristol were acquired under the public acquisition program, which is funded by the arts council and music fans who buy "shares" in the buildings.