The star has handed over the full amount of his £25,000 honor winnings to the MVT, which functions to save the Britain's small concert spaces.
Fender was presented with the award on 16 October as his third album the album was named the top album of the last 12 months.
The musician has chosen to donate the funds to the MVT, in recognition of the crucial part grassroots venues played in his initial steps.
"I personally wouldn't be doing what I am doing today if it hadn't been for all the gigs I played around the North East, and further afield, when I was just getting going," said Fender. "These locations are iconic, but they are in difficulty."
Since the start of 2023, at least 150 of these venues have permanently closed – roughly 16 percent of the whole industry in the UK.
Recently, top acts including Pulp, Coldplay, the singer Katy Perry and Sheeran have all aided the Music Venues Trust in its efforts to support the industry, by including a minor surcharge to their admission fees, which supports local stages.
Fender also took part, generating in excess of £100,000 on his recent tour to help thirty-eight local spots across Britain.
The money assisted venues that were confronting imminent closure due to challenges caused by flooding, fire incidents and personal losses, as well as licensing issues, conflicts and noise complaints.
Additional spaces received monetary aid in improving infrastructure and technical equipment that directly benefitted artists and concertgoers.
"The notion that revenue from shows in big venues backs the smaller venues, where it begins for musicians like me, is just logical," Sam Fender has stated.
Fender is far from the only musician to contribute his Mercury Prize prize money to worthy causes.
In they won the trophy in the year 1996 for their album the album, frontman Jarvis Cocker stated that the band would give their cash to the charity War Child.
During 2002, artist she divided her prize across multiple good causes, such as the NSPCC and a Sickle Cell charity.
"And I gave a thousand pounds to Highgate Newtown, to their classes, because I trained in gymnastics when I was growing up and they required updated gear," Ms Dynamite shared with a publication.
Two years ago, the band donated their funds to the community center that nurtured their band, as well as other local music groups.
And winners that year the group gave their winnings to a multiple sclerosis charity after a friend was diagnosed the disease.
"Receiving the award was sufficient," remarked vocalist the singer. "The prize was the cherry on top but we didn't need the bonus, because we had the honor. So our success impacted the lives of others."
Last week, the Music Venues Trust announced it had rescued two small stages in the South East, by bringing them into local control.
The first in the city and the other in the city were acquired under the Own Our Venues initiative, which is backed by a national body and supporters who buy "shares" in the buildings.
