The star has given the full amount of his £25,000 award cash to the MVT, which functions to preserve the United Kingdom's grassroots live music spots.
He was awarded the prize on mid-October as his latest record the album was named the top album of the last 12 months.
Fender has decided to give the cash to the trust, in appreciation of the vital role small stages fulfilled in his initial steps.
"I couldn't be pursuing my current career if it hadn't been for all the shows I performed around the region, and beyond, when I was beginning," said Fender. "These spaces are legendary, but they are struggling."
Beginning in 2023, over 150 of these venues have shut down – roughly 16% of the total UK scene.
Recently, well-known musicians like Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the MVT in its efforts to support the industry, by adding a small levy to their ticket costs, which supports independent venues.
Fender also joined in, raising over £100k on his 2024 arena tour to help 38 small stages across England, Scotland, and Wales.
The donation assisted spaces that were facing possible closure due to challenges stemming from floods, fires and personal losses, as well as permit problems, court cases and neighbor objections.
Additional spaces were granted funding support in improving infrastructure and technical equipment that directly benefitted musicians and concertgoers.
"The idea that revenue from performances in major spaces supports the local stages, where it kicks off for musicians like me, is just common sense," Sam Fender has commented.
Fender is among several artists to donate his Mercury Prize winnings to charitable organizations.
In Pulp received the prize in 1996 for their record their work, lead singer Cocker announced that the band would donate their cash to the charity War Child.
In 2002, musician the artist split her award between a few organizations, like the children's charity and a Sickle Cell charity.
"Additionally, I contributed a £1,000 to Highgate Newtown, to their gymnastics class, because I trained in gymnastics when I was a child and they lacked new equipment," she shared with a publication.
Two years ago, the band gave their funds to the youth organization that developed their band, alongside other independent music bodies.
And 1994 winners M People contributed their winnings to a multiple sclerosis charity after a close contact was identified with the disease.
"The victory was sufficient," stated singer Small. "The money was the bonus but we didn't need the extra, because we had the cake. So our victory touched somebody else's life."
In the past week, the MVT shared it had rescued two grassroots venues in south-east England, by bringing them into local control.
The Joiners in the city and The Croft in Bristol were bought under the public acquisition scheme, which is funded by the arts council and music fans who buy "stakes" in the properties.
