The artist has handed over the full amount of his £25,000 award winnings to the trust for venues, which functions to protect the United Kingdom's small music venues.
The star was awarded the award on October 16 as his third album his work was named the top album of the previous year.
He has opted to give the cash to the Music Venues Trust, in recognition of the essential function local spots had in his beginning days.
"I personally couldn't be pursuing my current career if it wasn't for all the shows I performed around the North East, and elsewhere, when I was beginning," stated Fender. "These venues are legendary, but they are facing challenges."
Since the start of 2023, more than 150 of these spaces have shut down – approximately one-sixth of the whole industry in the UK.
Over the past year, major artists such as the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its initiatives to keep the scene afloat, by applying a minor surcharge to their admission fees, which supports smaller concert halls.
Sam Fender also joined in, generating in excess of £100,000 on his 2024 arena tour to support numerous small stages across England, Scotland, and Wales.
These funds helped locations that were dealing with imminent closure due to difficulties arising from flooding, blazes and personal losses, as well as regulatory hurdles, conflicts and noise complaints.
Some locations received funding support in upgrading amenities and sound and lighting systems that helped performers and audiences.
"The idea that revenue from shows in big venues backs the independent spots, where it begins for performers like me, is just logical," Fender has said.
The musician is not the first artist to give his Mercury Prize winnings to worthy causes.
When they won the trophy in the mid-90s for their release the album, frontman Jarvis Cocker stated that the act would contribute their prize money to the charity War Child.
In 2002, musician Ms Dynamite split her bounty across a few organizations, like the NSPCC and a Sickle Cell charity.
"Additionally, I gave a grand to Highgate Newtown, to their classes, because I trained in gymnastics when I was younger and they needed updated gear," the artist shared with outlets.
In recent years, they contributed their winnings to the community center that supported their band, in addition to other independent music bodies.
And the 1994 recipients they contributed their winnings to a MS organization after a friend was diagnosed the disease.
"Winning was sufficient," remarked singer the singer. "The money was the extra but we didn't require the bonus, because we had the cake. So our winning touched the lives of others."
Recently, the Music Venues Trust shared it had protected a couple of grassroots venues in south-east England, by bringing them into local control.
The first in Southampton and the second in Bristol were acquired under the Own Our Venues program, which is backed by Arts Council England and music fans who buy "ownership units" in the venues.