The artist has given the entirety of his £25,000 honor cash to the MVT, which works to preserve the Britain's independent music venues.
The star was presented with the award on mid-October as his third album People Watching was chosen as the top album of the previous year.
He has opted to donate the funds to the trust, in acknowledgment of the crucial part small stages played in his early career.
"As an artist wouldn't be doing my current career if it weren't for all the performances I played around the area, and further afield, when I was beginning," stated Sam Fender. "These locations are iconic, but they are in difficulty."
Since the start of 2023, more than 150 of these venues have ceased operations – approximately 16% of the whole industry in the UK.
Recently, top acts including the band Pulp, Coldplay, Katy Perry and Sheeran have all backed the Music Venues Trust in its attempts to help venues survive, by adding a modest fee to their ticket costs, which supports independent venues.
Fender also joined in, collecting more than £100,000 on his live tour to assist numerous local spots across Britain.
The money helped spaces that were dealing with imminent closure due to challenges stemming from floods, blazes and bereavements, as well as permit problems, court cases and noise complaints.
Other venues were granted funding support in modernizing facilities and sound and lighting systems that directly benefitted musicians and concertgoers.
"The concept that funds from concerts in big venues supports the local stages, where it begins for musicians like me, is just logical," the star has said.
The musician is not the first artist to contribute his Mercury Prize funds to worthy causes.
Back when the band earned the prize in the year 1996 for their record Different Class, lead singer Cocker declared that the band would contribute their cash to the organization War Child.
In 2002, artist Ms Dynamite split her prize among multiple good causes, including the children's charity and a Sickle Cell organization.
"Additionally, I donated a £1,000 to my local community centre, to their gymnastics program, because I practiced gymnastics when I was a child and they lacked new equipment," the artist told outlets.
Previously, Ezra Collective contributed their winnings to the youth organization that nurtured their band, as well as other grassroots music organisations.
Also the 1994 recipients the group contributed their winnings to a MS organization after a acquaintance was found to have the illness.
"Receiving the award was sufficient," said vocalist Small. "The prize was the extra but we could do without the extra, because we had the honor. So our success impacted somebody else's life."
Last week, the trust shared it had rescued a couple of small stages in the South East, by transferring them to community ownership.
One venue in that area and the other in that location were purchased under the Own Our Venues scheme, which is backed by the arts council and enthusiasts who acquire "ownership units" in the venues.
