The artist has given the full amount of his £25,000 award prize money to the trust for venues, which works to save the UK's independent live music spots.
The star was awarded the award on 16 October as his latest record the album was chosen as the outstanding release of the previous year.
Fender has opted to give the cash to the Music Venues Trust, in appreciation of the crucial part grassroots venues had in his initial steps.
"As an artist couldn't be pursuing my current career if it wasn't for all the gigs I performed around the region, and elsewhere, when I was beginning," said the artist. "These spaces are legendary, but they are facing challenges."
Since the start of 2023, over 150 of these venues have permanently closed – about 16 percent of the entire UK sector.
Recently, major artists including Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its efforts to support the industry, by including a small levy to their ticket prices, which supports smaller concert halls.
Fender also joined in, raising in excess of £100,000 on his recent tour to assist 38 small stages across the UK.
These funds supported spaces that were facing possible closure due to issues arising from floods, fires and bereavements, as well as regulatory hurdles, legal disputes and sound issues.
Some locations were granted financial assistance in upgrading facilities and sound and lighting systems that helped performers and concertgoers.
"The idea that revenue from shows in big venues helps the local stages, where it all starts for performers like me, is just sensible," Sam Fender has commented.
He is among several artists to donate his Mercury Prize winnings to worthy causes.
When they won the award in the year 1996 for their record Different Class, lead singer Jarvis Cocker stated that the band would give their prize money to the non-profit War Child.
During 2002, musician she divided her bounty among multiple organizations, such as the NSPCC and a Sickle Cell organization.
"Additionally, I gave a £1,000 to my local community centre, to their gymnastics class, because I did gymnastics when I was growing up and they lacked better apparatus," she shared with outlets.
Two years ago, the band contributed their funds to the local youth club that developed their act, as well as other grassroots music organisations.
Additionally winners that year they donated their winnings to a multiple sclerosis charity after a friend was identified with the illness.
"The victory was ample," said artist Small. "The cash was the extra but we could do without the cherry, because we had the main prize. So our victory affected somebody else's life."
Last week, the MVT shared it had saved a couple of grassroots venues in the South East, by placing them under public stewardship.
The first in that area and the second in that location were bought under the community ownership program, which is funded by the arts council and supporters who purchase "shares" in the venues.
