The artist has given the entirety of his £25k award winnings to the MVT, which operates to save the United Kingdom's independent live music spots.
The star was given the award on October 16 as his new release People Watching was named the top album of the past year.
He has decided to donate the funds to the trust, in appreciation of the crucial part small stages fulfilled in his early career.
"As an artist wouldn't be doing what I am doing today if it hadn't been for all the gigs I played around the North East, and elsewhere, when I was just getting going," remarked Sam Fender. "These locations are iconic, but they are in difficulty."
Since the start of 2023, over 150 of these spaces have shut down – approximately 16% of the whole industry in the UK.
In the last year, top acts such as the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the trust in its efforts to help venues survive, by including a minor surcharge to their admission fees, which goes to help local stages.
Sam Fender also joined in, generating in excess of £100,000 on his live tour to help 38 local spots across Britain.
The money assisted spaces that were confronting imminent closure due to issues stemming from water damage, fire incidents and family tragedies, as well as licensing issues, conflicts and neighbor objections.
Other venues received monetary aid in improving amenities and sound and lighting systems that positively impacted artists and concertgoers.
"The concept that money from concerts in large arenas backs the local stages, where it begins for musicians like me, is just logical," Sam Fender has said.
Fender is among several artists to contribute his Mercury Prize funds to charitable organizations.
Back when the band received the award in the mid-90s for their record Different Class, lead singer the singer announced that the act would donate their winnings to the charity War Child.
During 2002, musician the artist split her prize across a few organizations, like the NSPCC and a Sickle Cell charity.
"And I donated a £1,000 to my local community centre, to their gymnastics program, because I did gymnastics when I was growing up and they needed new equipment," she told a publication.
Two years ago, Ezra Collective contributed their prize money to the youth organization that nurtured their act, in addition to other grassroots music organisations.
And winners that year the group gave their winnings to a multiple sclerosis charity after a acquaintance was identified with the condition.
"The victory was sufficient," said singer the singer. "The money was the bonus but we didn't need the extra, because we had the cake. So our winning affected the lives of others."
Recently, the Music Venues Trust shared it had saved two small stages in south-east England, by transferring them to local control.
The Joiners in Southampton and the other in Bristol were purchased under the Own Our Venues initiative, which is supported by Arts Council England and enthusiasts who acquire "ownership units" in the buildings.