The artist has donated the full amount of his £25,000 award cash to the MVT, which works to protect the United Kingdom's small live music spots.
Fender was given the award on mid-October as his new release his work was declared the outstanding release of the past year.
Fender has opted to give the cash to the Music Venues Trust, in recognition of the essential function small stages fulfilled in his initial steps.
"I personally would not have achieved what I am doing today if it hadn't been for all the shows I did around the North East, and beyond, when I was beginning," stated Sam Fender. "These venues are legendary, but they are in difficulty."
From early 2023 onward, at least 150 of these locations have shut down – approximately 16% of the whole industry in the UK.
Over the past year, top acts such as Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its attempts to help venues survive, by applying a modest fee to their admission fees, which goes to help smaller concert halls.
He also joined in, collecting over £100k on his 2024 arena tour to support thirty-eight grassroots venues across England, Scotland, and Wales.
The donation assisted locations that were dealing with potential shutdown due to difficulties arising from flooding, fire incidents and personal losses, as well as licensing issues, legal disputes and neighbor objections.
Other venues received funding support in modernizing amenities and technical equipment that helped musicians and fans.
"The concept that revenue from shows in big venues helps the independent spots, where it kicks off for artists like me, is just sensible," Sam Fender has stated.
Fender is far from the only musician to give his Mercury Prize prize money to charitable organizations.
In they received the trophy in 1996 for their album Different Class, frontman Jarvis Cocker stated that the band would contribute their winnings to the organization the charity.
That year, rapper and singer Ms Dynamite shared her prize between a few organizations, including the children's charity and a charity for Sickle Cell.
"I also contributed a £1,000 to my local community centre, to their classes, because I did gymnastics when I was a child and they needed updated gear," she shared with the media.
Two years ago, Ezra Collective donated their prize money to the community center that nurtured their band, alongside other independent music bodies.
Additionally 1994 winners M People donated their winnings to a multiple sclerosis charity after a friend was identified with the condition.
"Receiving the award was quite enough," stated artist the singer. "The cash was the extra but we could do without the bonus, because we had the honor. So our success impacted somebody else's life."
In the past week, the Music Venues Trust shared it had saved several small stages in that region, by placing them under public stewardship.
The first in Southampton and The Croft in that location were acquired under the community ownership program, which is supported by the arts council and enthusiasts who buy "shares" in the buildings.