The star has given the full amount of his £25k award prize money to the trust for venues, which operates to preserve the United Kingdom's independent live music spots.
He was awarded the award on mid-October as his third album his work was named the outstanding release of the previous year.
He has chosen to give the cash to the MVT, in acknowledgment of the essential function small stages fulfilled in his beginning days.
"As an artist wouldn't be doing what I am doing today if it hadn't been for all the performances I did around the area, and elsewhere, when I was starting out," remarked Fender. "These venues are legendary, but they are in difficulty."
Beginning in 2023, over 150 of these venues have permanently closed – roughly 16% of the entire UK sector.
Recently, top acts such as Pulp, Coldplay, Katy Perry and Sheeran have all supported the Music Venues Trust in its attempts to keep the scene afloat, by applying a modest fee to their ticket costs, which benefits local stages.
Sam Fender also took part, raising over £100k on his recent tour to assist numerous local spots across England, Scotland, and Wales.
The donation supported spaces that were dealing with possible closure due to challenges caused by water damage, fire incidents and personal losses, as well as regulatory hurdles, court cases and noise complaints.
Other venues were granted funding support in improving facilities and sound and lighting systems that directly benefitted performers and concertgoers.
"The idea that money from concerts in major spaces supports the smaller venues, where it all starts for musicians like me, is just sensible," Fender has said.
The musician is not the first artist to contribute his Mercury Prize prize money to worthy causes.
Back when they received the award in the mid-90s for their record Different Class, vocalist Cocker declared that the group would give their cash to the organization War Child.
In 2002, rapper and singer Ms Dynamite shared her prize among multiple charities, like the NSPCC and a Sickle Cell organization.
"And I donated a £1,000 to the center, to their classes, because I practiced gymnastics when I was a child and they required updated gear," Ms Dynamite explained to the media.
Two years ago, they donated their winnings to the local youth club that developed their band, alongside other grassroots music organisations.
Additionally 1994 winners the group contributed their award to a charity for MS after a acquaintance was found to have the condition.
"The victory was ample," remarked vocalist Small. "The prize was the extra but we didn't require the extra, because we had the cake. So our victory touched somebody else's life."
In the past week, the Music Venues Trust announced it had rescued two grassroots venues in south-east England, by bringing them into public stewardship.
The Joiners in that area and The Croft in that location were acquired under the community ownership program, which is funded by a national body and supporters who buy "stakes" in the properties.