The star has handed over the full amount of his £25,000 award prize money to the MVT, which operates to protect the United Kingdom's grassroots music venues.
The star was awarded the prize on 16 October as his new release his work was named the best record of the past year.
Fender has chosen to donate the funds to the MVT, in recognition of the crucial part small stages fulfilled in his early career.
"I personally wouldn't be doing this success if it hadn't been for all the shows I played around the area, and elsewhere, when I was just getting going," remarked Sam Fender. "These venues are legendary, but they are struggling."
Since the start of 2023, over 150 of these spaces have shut down – roughly 16% of the total UK scene.
Recently, top acts such as the band Pulp, Coldplay, Katy Perry and Sheeran have all aided the MVT in its attempts to support the industry, by applying a small levy to their ticket costs, which goes to help local stages.
He also joined in, raising over £100k on his live tour to help thirty-eight small stages across Britain.
The money helped venues that were facing possible closure due to issues stemming from floods, blazes and family tragedies, as well as permit problems, conflicts and neighbor objections.
Some locations obtained financial assistance in improving amenities and gear that positively impacted artists and concertgoers.
"The concept that funds from concerts in large arenas supports the local stages, where it all starts for performers like me, is just common sense," the star has commented.
Fender is far from the only musician to give his Mercury Prize prize money to good deeds.
In Pulp received the award in the year 1996 for their album their work, lead singer Jarvis Cocker stated that the act would contribute their cash to the charity War Child.
That year, rapper and singer the artist divided her award between several good causes, including the NSPCC and a charity for Sickle Cell.
"I also gave a thousand pounds to the center, to their gymnastics class, because I did gymnastics when I was growing up and they lacked better apparatus," Ms Dynamite explained to the media.
Previously, the band donated their winnings to the community center that developed their band, as well as other independent music bodies.
Additionally the 1994 recipients M People gave their prize to a charity for MS after a friend was diagnosed the illness.
"The victory was quite enough," said artist the singer. "The prize was the bonus but we could do without the cherry, because we had the cake. So our winning affected somebody else's life."
Last week, the Music Venues Trust shared it had rescued several grassroots venues in the South East, by transferring them to public stewardship.
The Joiners in that area and the other in that location were bought under the community ownership initiative, which is backed by the arts council and supporters who purchase "ownership units" in the venues.