The star has handed over the complete sum of his twenty-five thousand pound award cash to the trust for venues, which works to preserve the Britain's small live music spots.
Fender was presented with the prize on October 16 as his third album his work was chosen as the top album of the past year.
He has opted to hand the money over to the trust, in acknowledgment of the vital role grassroots venues played in his beginning days.
"I personally wouldn't be doing my current career if it weren't for all the shows I performed around the area, and beyond, when I was beginning," said Fender. "These locations are legendary, but they are in difficulty."
From early 2023 onward, over 150 of these spaces have shut down – approximately 16% of the entire UK sector.
In the last year, well-known musicians including the band Pulp, Coldplay, the singer Katy Perry and Sheeran have all supported the MVT in its attempts to help venues survive, by applying a modest fee to their admission fees, which supports smaller concert halls.
Fender also joined in, collecting over £100k on his 2024 arena tour to help thirty-eight grassroots venues across Britain.
These funds supported venues that were facing potential shutdown due to issues caused by water damage, blazes and family tragedies, as well as permit problems, legal disputes and neighbor objections.
Additional spaces were granted monetary aid in improving amenities and technical equipment that directly benefitted musicians and fans.
"The concept that funds from performances in big venues backs the independent spots, where it kicks off for musicians like me, is just sensible," Sam Fender has said.
He is not the first artist to contribute his Mercury Prize prize money to worthy causes.
In they won the prize in the year 1996 for their album Different Class, lead singer Jarvis Cocker announced that the act would contribute their cash to the non-profit War Child.
During 2002, musician Ms Dynamite shared her prize among multiple charities, such as the children's charity and a Sickle Cell organization.
"Additionally, I gave a £1,000 to Highgate Newtown, to their classes, because I did gymnastics when I was growing up and they needed updated gear," the artist told outlets.
Previously, Ezra Collective gave their winnings to the local youth club that developed their band, as well as other independent music bodies.
And 1994 winners the group donated their winnings to a charity for MS after a acquaintance was identified with the illness.
"Receiving the award was quite enough," stated vocalist Heather Small. "The money was the bonus but we didn't require the extra, because we had the main prize. So our winning touched somebody else's life."
Recently, the MVT shared it had saved several grassroots venues in south-east England, by transferring them to community ownership.
The Joiners in that area and The Croft in that location were purchased under the public acquisition initiative, which is funded by the arts council and supporters who acquire "shares" in the venues.