The star has given the complete sum of his twenty-five thousand pound award cash to the MVT, which works to protect the Britain's independent live music spots.
He was given the prize on mid-October as his third album People Watching was declared the outstanding release of the past year.
He has chosen to give the cash to the trust, in acknowledgment of the crucial part local spots played in his early career.
"I wouldn't be doing my current career if it wasn't for all the shows I did around the region, and beyond, when I was just getting going," said Sam Fender. "These spaces are renowned, but they are facing challenges."
From early 2023 onward, over 150 of these locations have permanently closed – approximately 16% of the entire UK sector.
Recently, top acts such as Pulp, the group Coldplay, Katy Perry and Sheeran have all supported the MVT in its initiatives to support the industry, by including a small levy to their ticket prices, which goes to help independent venues.
Fender also joined in, raising more than £100,000 on his live tour to help 38 local spots across the UK.
The donation helped spaces that were dealing with possible closure due to issues arising from floods, fire incidents and family tragedies, as well as regulatory hurdles, court cases and sound issues.
Other venues received funding support in improving facilities and sound and lighting systems that directly benefitted artists and fans.
"The idea that funds from concerts in major spaces supports the smaller venues, where it all starts for performers like me, is just common sense," Fender has said.
Fender is far from the only musician to contribute his Mercury Prize funds to worthy causes.
When Pulp received the trophy in the mid-90s for their release Different Class, lead singer Jarvis Cocker declared that the band would give their prize money to the organization War Child.
In 2002, artist she split her prize across multiple organizations, including the children's charity and a Sickle Cell charity.
"And I contributed a thousand pounds to my local community centre, to their gymnastics program, because I practiced gymnastics when I was growing up and they needed updated gear," Ms Dynamite shared with outlets.
Two years ago, Ezra Collective gave their prize money to the community center that supported their group, alongside other grassroots music organisations.
Also the 1994 recipients the group gave their prize to a multiple sclerosis charity after a close contact was diagnosed the disease.
"The victory was ample," said artist Small. "The cash was the bonus but we didn't need the bonus, because we had the cake. So our success touched another person's life."
Last week, the MVT shared it had saved several small stages in that region, by transferring them to local control.
The first in the city and the other in that location were bought under the community ownership scheme, which is funded by Arts Council England and supporters who acquire "shares" in the buildings.
