The star has donated the complete sum of his £25,000 award winnings to the MVT, which operates to preserve the Britain's small live music spots.
He was given the prize on October 16 as his third album the album was named the top album of the past year.
Fender has opted to donate the funds to the Music Venues Trust, in recognition of the vital role grassroots venues fulfilled in his beginning days.
"I personally wouldn't be doing my current career if it wasn't for all the shows I performed around the North East, and beyond, when I was starting out," said Sam Fender. "These venues are iconic, but they are facing challenges."
From early 2023 onward, more than 150 of these venues have ceased operations – roughly one-sixth of the whole industry in the UK.
Over the past year, major artists such as Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the trust in its initiatives to keep the scene afloat, by applying a minor surcharge to their ticket prices, which supports smaller concert halls.
Sam Fender also participated, collecting over £100k on his 2024 arena tour to assist numerous grassroots venues across the UK.
The donation assisted spaces that were confronting possible closure due to difficulties arising from floods, fire incidents and bereavements, as well as regulatory hurdles, legal disputes and neighbor objections.
Additional spaces received funding support in modernizing amenities and gear that directly benefitted musicians and fans.
"The idea that funds from shows in major spaces backs the independent spots, where it begins for artists like me, is just common sense," Fender has said.
The musician is not the first artist to donate his Mercury Prize winnings to worthy causes.
Back when the band received the trophy in the year 1996 for their album the album, lead singer Jarvis Cocker announced that the act would donate their prize money to the charity War Child.
That year, rapper and singer she shared her bounty among multiple charities, such as the children's charity and a Sickle Cell organization.
"I also contributed a thousand pounds to Highgate Newtown, to their gymnastics class, because I trained in gymnastics when I was younger and they needed updated gear," she told the media.
Previously, they gave their prize money to the youth organization that developed their act, alongside other independent music bodies.
Additionally the 1994 recipients they gave their prize to a multiple sclerosis charity after a friend was diagnosed the illness.
"Receiving the award was quite enough," stated vocalist the singer. "The money was the extra but we didn't require the extra, because we had the cake. So our success affected another person's life."
Last week, the trust announced it had saved two grassroots venues in south-east England, by placing them under public stewardship.
The first in Southampton and the second in that location were purchased under the Own Our Venues program, which is funded by the arts council and music fans who buy "ownership units" in the venues.