The artist has given the complete sum of his £25,000 award cash to the MVT, which works to save the United Kingdom's small live music spots.
Fender was given the award on October 16 as his latest record his work was declared the best record of the previous year.
The musician has chosen to donate the funds to the Music Venues Trust, in appreciation of the essential function small stages fulfilled in his beginning days.
"I couldn't be pursuing my current career if it weren't for all the shows I performed around the area, and beyond, when I was just getting going," said Sam Fender. "These locations are legendary, but they are facing challenges."
Since the start of 2023, more than 150 of these locations have ceased operations – roughly 16% of the entire UK sector.
In the last year, major artists including the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its attempts to help venues survive, by including a minor surcharge to their ticket prices, which supports independent venues.
Fender also joined in, generating more than £100,000 on his 2024 arena tour to support numerous small stages across Britain.
The donation assisted spaces that were facing potential shutdown due to issues caused by flooding, fire incidents and family tragedies, as well as licensing issues, legal disputes and sound issues.
Additional spaces were granted funding support in improving amenities and technical equipment that helped artists and concertgoers.
"The idea that funds from concerts in big venues supports the smaller venues, where it begins for musicians like me, is just logical," Fender has stated.
He is far from the only musician to give his Mercury Prize funds to good deeds.
Back when the band received the prize in the year 1996 for their album their work, lead singer Cocker announced that the band would give their cash to the charity War Child.
During 2002, rapper and singer Ms Dynamite shared her prize across multiple organizations, including the NSPCC and a Sickle Cell charity.
"And I gave a grand to the center, to their gymnastics class, because I trained in gymnastics when I was younger and they required better apparatus," the artist told the media.
In recent years, the band donated their prize money to the local youth club that nurtured their act, in addition to other independent music bodies.
Additionally the 1994 recipients M People contributed their winnings to a charity for MS after a acquaintance was diagnosed the illness.
"The victory was quite enough," remarked vocalist Small. "The cash was the bonus but we didn't require the cherry, because we had the main prize. So our winning impacted the lives of others."
Last week, the trust announced it had protected several grassroots venues in the South East, by placing them under public stewardship.
The Joiners in that area and the other in Bristol were acquired under the public acquisition scheme, which is supported by the arts council and music fans who acquire "shares" in the buildings.