The star has handed over the complete sum of his £25k award cash to the MVT, which operates to save the UK's small live music spots.
The star was given the award on mid-October as his third album People Watching was declared the best record of the past year.
Fender has chosen to give the cash to the MVT, in appreciation of the crucial part grassroots venues played in his initial steps.
"As an artist would not have achieved this success if it hadn't been for all the gigs I did around the area, and elsewhere, when I was just getting going," stated Fender. "These locations are renowned, but they are in difficulty."
Since the start of 2023, at least 150 of these locations have permanently closed – roughly one-sixth of the whole industry in the UK.
In the last year, major artists such as Pulp, Coldplay, Katy Perry and Sheeran have all supported the trust in its attempts to keep the scene afloat, by including a small levy to their admission fees, which supports local stages.
Sam Fender also joined in, raising in excess of £100,000 on his recent tour to support thirty-eight local spots across Britain.
These funds assisted spaces that were facing possible closure due to challenges caused by floods, fires and bereavements, as well as regulatory hurdles, conflicts and noise complaints.
Other venues were granted monetary aid in modernizing infrastructure and sound and lighting systems that helped performers and audiences.
"The concept that funds from performances in big venues supports the smaller venues, where it begins for musicians like me, is just logical," Fender has commented.
The musician is among several artists to donate his Mercury Prize prize money to worthy causes.
When the band received the prize in 1996 for their release the album, lead singer Jarvis Cocker stated that the group would contribute their prize money to the non-profit War Child.
In 2002, musician Ms Dynamite shared her award between multiple organizations, like the children's charity and a Sickle Cell charity.
"And I donated a thousand pounds to the center, to their gymnastics class, because I practiced gymnastics when I was growing up and they lacked new equipment," Ms Dynamite explained to the media.
In recent years, they donated their winnings to the youth organization that supported their act, alongside other local music groups.
Also 1994 winners M People gave their winnings to a multiple sclerosis charity after a friend was found to have the illness.
"Receiving the award was quite enough," stated singer Small. "The cash was the bonus but we could do without the cherry, because we had the honor. So our success impacted somebody else's life."
Recently, the trust shared it had saved a couple of small stages in the South East, by transferring them to local control.
One venue in that area and the second in the city were acquired under the Own Our Venues initiative, which is backed by Arts Council England and enthusiasts who acquire "shares" in the buildings.
