The artist has given the full amount of his £25k award winnings to the MVT, which functions to save the UK's small music venues.
He was awarded the award on mid-October as his third album his work was named the top album of the previous year.
Fender has opted to give the cash to the trust, in recognition of the crucial part local spots played in his early career.
"I personally would not have achieved this success if it weren't for all the performances I played around the North East, and further afield, when I was starting out," said Sam Fender. "These venues are legendary, but they are struggling."
Since the start of 2023, over 150 of these venues have permanently closed – approximately 16 percent of the total UK scene.
Recently, top acts including Pulp, Coldplay, Katy Perry and Sheeran have all backed the Music Venues Trust in its attempts to keep the scene afloat, by including a small levy to their ticket prices, which goes to help smaller concert halls.
He also joined in, generating in excess of £100,000 on his 2024 arena tour to assist numerous local spots across England, Scotland, and Wales.
These funds assisted venues that were facing possible closure due to issues caused by floods, fire incidents and bereavements, as well as permit problems, conflicts and sound issues.
Other venues received financial assistance in modernizing infrastructure and technical equipment that positively impacted performers and fans.
"The notion that funds from shows in big venues helps the independent spots, where it all starts for musicians like me, is just logical," Fender has commented.
He is not the first artist to donate his Mercury Prize winnings to charitable organizations.
In Pulp won the award in the mid-90s for their record the album, frontman the singer declared that the band would give their cash to the charity War Child.
In 2002, rapper and singer the artist shared her award across a few organizations, including the NSPCC and a charity for Sickle Cell.
"I also donated a grand to my local community centre, to their gymnastics class, because I did gymnastics when I was a child and they lacked better apparatus," she shared with a publication.
Previously, they contributed their prize money to the local youth club that developed their group, alongside other independent music bodies.
And winners that year M People contributed their prize to a multiple sclerosis charity after a friend was found to have the illness.
"The victory was quite enough," remarked vocalist Heather Small. "The prize was the cherry on top but we could do without the bonus, because we had the main prize. So our victory touched another person's life."
Last week, the Music Venues Trust shared it had protected two local spots in south-east England, by transferring them to public stewardship.
The Joiners in Southampton and the second in the city were acquired under the public acquisition program, which is supported by Arts Council England and supporters who purchase "stakes" in the buildings.
