The artist has handed over the entirety of his £25k honor cash to the MVT, which functions to preserve the UK's grassroots music venues.
The star was presented with the prize on mid-October as his new release his work was chosen as the best record of the previous year.
He has decided to donate the funds to the trust, in recognition of the crucial part local spots played in his initial steps.
"I would not have achieved what I am doing today if it hadn't been for all the shows I performed around the North East, and elsewhere, when I was beginning," remarked Fender. "These venues are iconic, but they are in difficulty."
From early 2023 onward, at least 150 of these spaces have permanently closed – about one-sixth of the entire UK sector.
In the last year, top acts like Pulp, Coldplay, Katy Perry and Sheeran have all supported the trust in its initiatives to keep the scene afloat, by applying a small levy to their ticket costs, which benefits independent venues.
Sam Fender also joined in, collecting more than £100,000 on his recent tour to assist 38 local spots across England, Scotland, and Wales.
The donation assisted venues that were confronting potential shutdown due to difficulties arising from flooding, fire incidents and personal losses, as well as regulatory hurdles, court cases and noise complaints.
Some locations obtained monetary aid in upgrading facilities and gear that helped performers and audiences.
"The idea that revenue from performances in major spaces helps the smaller venues, where it begins for performers like me, is just logical," Sam Fender has said.
Fender is among several artists to give his Mercury Prize winnings to worthy causes.
Back when Pulp received the award in the mid-90s for their record Different Class, lead singer Cocker stated that the band would contribute their winnings to the organization the charity.
During 2002, artist the artist shared her award across several charities, like the children's charity and a charity for Sickle Cell.
"And I donated a £1,000 to the center, to their classes, because I trained in gymnastics when I was younger and they lacked new equipment," the artist shared with the media.
Previously, Ezra Collective gave their funds to the youth organization that supported their act, as well as other independent music bodies.
Also winners that year M People donated their winnings to a charity for MS after a acquaintance was identified with the illness.
"The victory was quite enough," said singer the singer. "The cash was the extra but we could do without the extra, because we had the honor. So our victory impacted the lives of others."
Recently, the MVT revealed it had protected a couple of grassroots venues in south-east England, by bringing them into community ownership.
The Joiners in Southampton and the second in Bristol were bought under the community ownership initiative, which is funded by Arts Council England and music fans who acquire "stakes" in the venues.
