The star has handed over the complete sum of his £25k award winnings to the MVT, which works to save the UK's grassroots live music spots.
Fender was presented with the cheque on mid-October as his latest record People Watching was chosen as the outstanding release of the previous year.
Fender has chosen to hand the money over to the trust, in appreciation of the crucial part grassroots venues played in his initial steps.
"I couldn't be pursuing my current career if it wasn't for all the gigs I played around the area, and further afield, when I was starting out," said Sam Fender. "These locations are iconic, but they are in difficulty."
Since the start of 2023, more than 150 of these venues have permanently closed – about 16% of the whole industry in the UK.
In the last year, major artists such as the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the trust in its attempts to support the industry, by adding a small levy to their ticket costs, which benefits local stages.
Fender also joined in, generating more than £100,000 on his recent tour to assist 38 local spots across the UK.
The money supported locations that were confronting imminent closure due to difficulties stemming from water damage, blazes and personal losses, as well as regulatory hurdles, conflicts and neighbor objections.
Other venues were granted financial assistance in modernizing infrastructure and technical equipment that directly benefitted artists and concertgoers.
"The concept that money from performances in large arenas helps the smaller venues, where it kicks off for musicians like me, is just sensible," Fender has stated.
The musician is not the first artist to contribute his Mercury Prize winnings to worthy causes.
In Pulp earned the prize in 1996 for their release their work, lead singer Cocker declared that the band would contribute their cash to the charity War Child.
In 2002, musician Ms Dynamite divided her bounty among a few good causes, such as the children's charity and a charity for Sickle Cell.
"Additionally, I donated a thousand pounds to the center, to their gymnastics class, because I trained in gymnastics when I was younger and they needed updated gear," the artist shared with the media.
In recent years, Ezra Collective contributed their prize money to the youth organization that supported their group, as well as other local music groups.
And 1994 winners they contributed their prize to a MS organization after a friend was found to have the illness.
"Winning was ample," remarked vocalist Heather Small. "The money was the extra but we didn't require the bonus, because we had the main prize. So our winning affected the lives of others."
In the past week, the Music Venues Trust announced it had saved two small stages in that region, by transferring them to local control.
The Joiners in the city and The Croft in the city were acquired under the community ownership initiative, which is funded by Arts Council England and supporters who buy "stakes" in the buildings.