The star has handed over the entirety of his £25,000 honor cash to the trust for venues, which works to protect the Britain's small concert spaces.
The star was presented with the award on October 16 as his latest record People Watching was declared the best record of the last 12 months.
Fender has opted to give the cash to the Music Venues Trust, in acknowledgment of the essential function local spots fulfilled in his early career.
"I personally couldn't be pursuing this success if it hadn't been for all the shows I did around the North East, and elsewhere, when I was just getting going," said the artist. "These locations are iconic, but they are struggling."
Since the start of 2023, over 150 of these venues have shut down – roughly one-sixth of the total UK scene.
In the last year, major artists including the band Pulp, Coldplay, the singer Katy Perry and Sheeran have all aided the MVT in its initiatives to support the industry, by applying a minor surcharge to their ticket costs, which supports smaller concert halls.
Sam Fender also joined in, generating more than £100,000 on his 2024 arena tour to help numerous grassroots venues across the UK.
The money helped venues that were facing potential shutdown due to issues caused by floods, blazes and bereavements, as well as licensing issues, court cases and noise complaints.
Additional spaces received funding support in improving infrastructure and gear that helped musicians and concertgoers.
"The idea that money from shows in major spaces backs the smaller venues, where it kicks off for artists like me, is just common sense," Fender has commented.
The musician is not the first artist to give his Mercury Prize prize money to worthy causes.
Back when they earned the award in 1996 for their album the album, lead singer Cocker stated that the band would give their winnings to the organization the charity.
In 2002, musician Ms Dynamite shared her prize among a few charities, like the NSPCC and a charity for Sickle Cell.
"Additionally, I gave a thousand pounds to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was growing up and they needed updated gear," she shared with a publication.
In recent years, they donated their winnings to the youth organization that supported their group, in addition to other independent music bodies.
Additionally the 1994 recipients they contributed their prize to a MS organization after a close contact was identified with the illness.
"Winning was sufficient," remarked vocalist Small. "The money was the extra but we could do without the extra, because we had the honor. So our victory impacted another person's life."
Recently, the trust revealed it had rescued two local spots in the South East, by placing them under community ownership.
One venue in the city and the second in that location were purchased under the Own Our Venues initiative, which is funded by a national body and enthusiasts who buy "stakes" in the buildings.