The artist has donated the full amount of his £25k award cash to the MVT, which works to preserve the UK's small music venues.
Fender was presented with the award on 16 October as his new release his work was declared the outstanding release of the previous year.
He has chosen to hand the money over to the trust, in recognition of the essential function grassroots venues had in his early career.
"I personally couldn't be pursuing my current career if it hadn't been for all the shows I performed around the area, and further afield, when I was starting out," said Fender. "These spaces are iconic, but they are facing challenges."
From early 2023 onward, at least 150 of these venues have shut down – approximately 16 percent of the entire UK sector.
In the last year, well-known musicians such as the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its attempts to help venues survive, by applying a minor surcharge to their ticket prices, which supports independent venues.
Sam Fender also participated, collecting in excess of £100,000 on his live tour to assist numerous grassroots venues across Britain.
The money helped locations that were confronting possible closure due to issues arising from water damage, fire incidents and personal losses, as well as licensing issues, conflicts and noise complaints.
Some locations received financial assistance in improving infrastructure and sound and lighting systems that positively impacted artists and fans.
"The notion that money from concerts in major spaces helps the smaller venues, where it kicks off for artists like me, is just logical," the star has commented.
The musician is not the first artist to donate his Mercury Prize funds to worthy causes.
In they received the award in 1996 for their record Different Class, lead singer the singer announced that the act would donate their prize money to the charity the charity.
That year, artist Ms Dynamite divided her prize between several charities, like the children's charity and a Sickle Cell organization.
"I also contributed a grand to the center, to their gymnastics class, because I did gymnastics when I was growing up and they required updated gear," she told the media.
Previously, the band gave their winnings to the community center that nurtured their band, alongside other grassroots music organisations.
Additionally 1994 winners the group gave their winnings to a multiple sclerosis charity after a close contact was diagnosed the disease.
"The victory was quite enough," said artist the singer. "The prize was the extra but we didn't require the cherry, because we had the honor. So our victory affected somebody else's life."
Last week, the Music Venues Trust shared it had protected several small stages in that region, by placing them under public stewardship.
One venue in Southampton and the other in that location were bought under the Own Our Venues scheme, which is funded by a national body and music fans who purchase "shares" in the properties.
