The artist has donated the full amount of his £25,000 award winnings to the MVT, which functions to protect the UK's grassroots concert spaces.
Fender was given the award on 16 October as his third album his work was named the best record of the previous year.
Fender has opted to give the cash to the Music Venues Trust, in recognition of the vital role small stages played in his beginning days.
"I wouldn't be doing my current career if it hadn't been for all the shows I did around the area, and elsewhere, when I was starting out," remarked the artist. "These spaces are renowned, but they are in difficulty."
Beginning in 2023, over 150 of these locations have ceased operations – about one-sixth of the whole industry in the UK.
Over the past year, major artists including Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its initiatives to support the industry, by adding a small levy to their admission fees, which supports independent venues.
Sam Fender also took part, raising over £100k on his live tour to assist numerous local spots across England, Scotland, and Wales.
The donation helped spaces that were confronting potential shutdown due to difficulties stemming from floods, fires and bereavements, as well as licensing issues, legal disputes and neighbor objections.
Other venues obtained financial assistance in upgrading amenities and gear that helped performers and fans.
"The idea that money from shows in big venues helps the local stages, where it kicks off for musicians like me, is just sensible," Fender has commented.
The musician is far from the only musician to give his Mercury Prize funds to good deeds.
Back when Pulp earned the award in the mid-90s for their record their work, vocalist the singer announced that the band would donate their winnings to the non-profit War Child.
That year, artist the artist split her bounty across a few good causes, like the NSPCC and a Sickle Cell organization.
"I also donated a thousand pounds to Highgate Newtown, to their gymnastics class, because I practiced gymnastics when I was younger and they lacked better apparatus," she told a publication.
In recent years, Ezra Collective gave their funds to the community center that nurtured their group, alongside other grassroots music organisations.
And the 1994 recipients they donated their prize to a MS organization after a acquaintance was diagnosed the disease.
"Receiving the award was quite enough," remarked artist the singer. "The prize was the cherry on top but we could do without the cherry, because we had the cake. So our victory impacted another person's life."
Recently, the Music Venues Trust shared it had rescued several local spots in south-east England, by transferring them to community ownership.
One venue in that area and the other in the city were bought under the Own Our Venues scheme, which is backed by a national body and enthusiasts who buy "shares" in the properties.
