The artist has donated the entirety of his £25,000 award cash to the MVT, which works to protect the United Kingdom's grassroots concert spaces.
The star was given the prize on October 16 as his new release People Watching was declared the top album of the last 12 months.
He has decided to donate the funds to the MVT, in acknowledgment of the vital role local spots fulfilled in his initial steps.
"I personally wouldn't be doing my current career if it hadn't been for all the performances I performed around the region, and further afield, when I was just getting going," stated the artist. "These locations are iconic, but they are facing challenges."
Since the start of 2023, more than 150 of these spaces have ceased operations – roughly 16 percent of the whole industry in the UK.
In the last year, top acts like Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its efforts to keep the scene afloat, by adding a minor surcharge to their ticket costs, which benefits independent venues.
He also took part, collecting over £100k on his recent tour to assist numerous grassroots venues across the UK.
These funds helped spaces that were dealing with potential shutdown due to issues arising from water damage, blazes and personal losses, as well as licensing issues, conflicts and sound issues.
Additional spaces received monetary aid in upgrading amenities and sound and lighting systems that helped artists and concertgoers.
"The notion that revenue from performances in large arenas supports the local stages, where it kicks off for musicians like me, is just logical," Sam Fender has stated.
He is not the first artist to contribute his Mercury Prize funds to worthy causes.
In the band received the trophy in 1996 for their release Different Class, lead singer the singer announced that the group would contribute their prize money to the charity the charity.
That year, musician Ms Dynamite split her award between several good causes, such as the NSPCC and a charity for Sickle Cell.
"I also contributed a thousand pounds to the center, to their gymnastics program, because I practiced gymnastics when I was a child and they lacked updated gear," the artist shared with outlets.
In recent years, the band contributed their funds to the local youth club that developed their act, in addition to other independent music bodies.
And 1994 winners the group donated their award to a multiple sclerosis charity after a acquaintance was found to have the illness.
"The victory was quite enough," remarked vocalist Small. "The cash was the bonus but we didn't need the cherry, because we had the cake. So our success touched another person's life."
Recently, the MVT shared it had protected several grassroots venues in that region, by transferring them to local control.
The Joiners in the city and the other in Bristol were acquired under the public acquisition initiative, which is backed by a national body and supporters who acquire "shares" in the venues.