The star has given the entirety of his twenty-five thousand pound award winnings to the trust for venues, which functions to protect the UK's independent music venues.
Fender was awarded the award on mid-October as his new release People Watching was declared the outstanding release of the previous year.
Fender has opted to donate the funds to the Music Venues Trust, in acknowledgment of the vital role grassroots venues played in his early career.
"I would not have achieved what I am doing today if it wasn't for all the shows I played around the North East, and elsewhere, when I was beginning," remarked the artist. "These locations are renowned, but they are in difficulty."
Beginning in 2023, over 150 of these locations have permanently closed – roughly one-sixth of the total UK scene.
Over the past year, top acts like Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its efforts to keep the scene afloat, by including a modest fee to their admission fees, which benefits smaller concert halls.
Sam Fender also took part, raising over £100k on his recent tour to support numerous grassroots venues across Britain.
The money helped spaces that were dealing with possible closure due to issues arising from floods, fire incidents and personal losses, as well as regulatory hurdles, court cases and noise complaints.
Some locations received monetary aid in upgrading facilities and technical equipment that positively impacted musicians and audiences.
"The concept that funds from shows in major spaces helps the smaller venues, where it all starts for artists like me, is just logical," the star has said.
The musician is among several artists to give his Mercury Prize prize money to good deeds.
In Pulp received the trophy in the mid-90s for their album the album, frontman the singer stated that the band would donate their winnings to the non-profit War Child.
During 2002, artist Ms Dynamite shared her award among several charities, such as the NSPCC and a charity for Sickle Cell.
"And I gave a grand to my local community centre, to their gymnastics class, because I trained in gymnastics when I was growing up and they needed new equipment," the artist shared with outlets.
Two years ago, Ezra Collective gave their winnings to the community center that nurtured their act, alongside other local music groups.
And the 1994 recipients the group contributed their prize to a multiple sclerosis charity after a close contact was found to have the illness.
"Winning was ample," stated singer Heather Small. "The money was the bonus but we could do without the bonus, because we had the main prize. So our winning affected somebody else's life."
Recently, the Music Venues Trust announced it had rescued a couple of small stages in the South East, by bringing them into local control.
One venue in that area and the other in Bristol were bought under the Own Our Venues scheme, which is supported by a national body and music fans who buy "ownership units" in the venues.
