The star has given the complete sum of his £25,000 honor prize money to the MVT, which operates to protect the Britain's small concert spaces.
Fender was presented with the prize on mid-October as his new release his work was declared the best record of the last 12 months.
The musician has opted to give the cash to the trust, in recognition of the crucial part grassroots venues played in his early career.
"I would not have achieved my current career if it hadn't been for all the performances I played around the North East, and further afield, when I was just getting going," remarked Sam Fender. "These spaces are legendary, but they are facing challenges."
From early 2023 onward, at least 150 of these spaces have ceased operations – approximately 16% of the whole industry in the UK.
In the last year, top acts such as Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its attempts to help venues survive, by including a small levy to their admission fees, which benefits smaller concert halls.
Sam Fender also took part, collecting in excess of £100,000 on his live tour to help 38 grassroots venues across England, Scotland, and Wales.
These funds helped locations that were dealing with imminent closure due to difficulties arising from water damage, blazes and bereavements, as well as licensing issues, conflicts and neighbor objections.
Some locations received financial assistance in modernizing infrastructure and gear that directly benefitted musicians and concertgoers.
"The notion that funds from shows in big venues backs the smaller venues, where it all starts for performers like me, is just common sense," the star has stated.
Fender is not the first artist to contribute his Mercury Prize winnings to good deeds.
In the band received the trophy in the year 1996 for their album the album, frontman Cocker declared that the act would give their prize money to the charity War Child.
During 2002, musician Ms Dynamite shared her prize among multiple good causes, 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 practiced gymnastics when I was growing up and they required better apparatus," she told the media.
Two years ago, they gave their prize money to the youth organization that nurtured their band, alongside other local music groups.
Also 1994 winners the group donated their winnings to a MS organization after a friend was diagnosed the illness.
"Winning was ample," said artist Heather Small. "The cash was the extra but we didn't need the extra, because we had the honor. So our victory affected somebody else's life."
Recently, the trust announced it had protected several local spots in south-east England, by placing them under public stewardship.
One venue in Southampton and the second in the city were bought under the public acquisition program, which is supported by Arts Council England and enthusiasts who buy "stakes" in the properties.