The artist has donated the full amount of his £25k award winnings to the MVT, which functions to save the Britain's grassroots concert spaces.
He was given the prize on mid-October as his latest record his work was chosen as the best record of the past year.
The musician has opted to donate the funds to the MVT, in appreciation of the vital role local spots fulfilled in his early career.
"I personally couldn't be pursuing my current career if it hadn't been for all the shows I played around the area, and further afield, when I was starting out," stated Sam Fender. "These venues are renowned, but they are facing challenges."
Since the start of 2023, over 150 of these venues have permanently closed – approximately 16 percent of the whole industry in the UK.
Over the past year, major artists including Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the trust in its initiatives to keep the scene afloat, by including a small levy to their ticket prices, which benefits local stages.
Sam Fender also joined in, collecting over £100k on his recent tour to help 38 small stages across the UK.
These funds assisted venues that were dealing with imminent closure due to difficulties stemming from floods, blazes and bereavements, as well as regulatory hurdles, legal disputes and sound issues.
Some locations were granted monetary aid in improving infrastructure and gear that directly benefitted performers and audiences.
"The idea that revenue from concerts in major spaces backs the smaller venues, where it kicks off for performers like me, is just sensible," Sam Fender has stated.
The musician is not the first artist to contribute his Mercury Prize prize money to worthy causes.
Back when the band received the award in 1996 for their record their work, vocalist the singer stated that the act would give their cash to the organization War Child.
That year, artist Ms Dynamite split her prize among several charities, like the children's charity and a Sickle Cell organization.
"And I donated a £1,000 to my local community centre, to their gymnastics class, because I practiced gymnastics when I was growing up and they lacked new equipment," she explained to outlets.
Previously, they gave their funds to the local youth club that nurtured their group, alongside other independent music bodies.
Also 1994 winners M People contributed their winnings to a multiple sclerosis charity after a close contact was identified with the illness.
"Receiving the award was sufficient," said artist Heather Small. "The prize was the cherry on top but we didn't require the extra, because we had the honor. So our victory touched another person's life."
In the past week, the Music Venues Trust revealed it had rescued several grassroots venues in the South East, by transferring them to local control.
The first in that area and the second in that location were acquired under the Own Our Venues program, which is funded by the arts council and music fans who purchase "shares" in the venues.