The star has handed over the entirety of his £25,000 honor winnings to the trust for venues, which functions to preserve the UK's grassroots concert spaces.
Fender was awarded the cheque on October 16 as his new release his work was declared the top album of the previous year.
Fender has decided to donate the funds to the Music Venues Trust, in acknowledgment of the essential function small stages played in his early career.
"I would not have achieved my current career if it wasn't for all the performances I performed around the region, and elsewhere, when I was beginning," said Sam Fender. "These spaces are renowned, but they are facing challenges."
Beginning in 2023, at least 150 of these venues have permanently closed – approximately 16 percent of the entire UK sector.
In the last year, well-known musicians such as the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its initiatives to support the industry, by applying a small levy to their admission fees, which benefits local stages.
Fender also took part, raising over £100k on his recent tour to help 38 grassroots venues across England, Scotland, and Wales.
The donation supported spaces that were confronting imminent closure due to difficulties caused by floods, blazes and bereavements, as well as regulatory hurdles, conflicts and noise complaints.
Other venues received financial assistance in modernizing facilities and gear that helped musicians and concertgoers.
"The notion that funds from shows in large arenas supports the independent spots, where it all starts for musicians like me, is just sensible," Sam Fender has stated.
Fender is not the first artist to donate his Mercury Prize prize money to good deeds.
In they received the prize in the year 1996 for their album their work, frontman the singer stated that the band would contribute their cash to the non-profit War Child.
That year, artist she divided her bounty across several good causes, including the children's charity and a charity for Sickle Cell.
"And I donated a £1,000 to Highgate Newtown, to their gymnastics program, because I trained in gymnastics when I was a child and they needed new equipment," Ms Dynamite explained to a publication.
Two years ago, Ezra Collective contributed their winnings to the youth organization that developed their band, in addition to other grassroots music organisations.
Also the 1994 recipients they contributed their award to a MS organization after a friend was identified with the illness.
"Receiving the award was quite enough," remarked artist Heather Small. "The money was the cherry on top but we didn't need the bonus, because we had the cake. So our victory touched another person's life."
Last week, the MVT revealed it had saved a couple of small stages in south-east England, by placing them under community ownership.
The first in that area and the other in Bristol were bought under the Own Our Venues program, which is funded by a national body and music fans who acquire "stakes" in the properties.