The star has handed over the full amount of his £25k award prize money to the trust for venues, which functions to protect the UK's independent live music spots.
The star was awarded the prize on mid-October as his latest record his work was declared the best record of the past year.
Fender has decided to donate the funds to the Music Venues Trust, in appreciation of the essential function small stages played in his initial steps.
"As an artist couldn't be pursuing what I am doing today if it wasn't for all the shows I did around the region, and elsewhere, when I was starting out," said Fender. "These spaces are iconic, but they are facing challenges."
Beginning in 2023, at least 150 of these venues have permanently closed – roughly one-sixth of the total UK scene.
In the last year, major artists including Pulp, the group Coldplay, Katy Perry and Sheeran have all supported the MVT in its initiatives to support the industry, by applying a modest fee to their admission fees, which benefits independent venues.
Sam Fender also took part, generating more than £100,000 on his recent tour to support thirty-eight grassroots venues across the UK.
These funds assisted spaces that were facing imminent closure due to issues caused by flooding, blazes and family tragedies, as well as regulatory hurdles, conflicts and sound issues.
Some locations obtained monetary aid in modernizing infrastructure and technical equipment that helped artists and audiences.
"The concept that revenue from performances in large arenas supports the smaller venues, where it kicks off for musicians like me, is just sensible," the star has commented.
He is among several artists to contribute his Mercury Prize winnings to worthy causes.
When they received the award in the mid-90s for their record Different Class, frontman Cocker declared that the band would give their prize money to the charity War Child.
That year, artist she shared her prize among several charities, such as the children's charity and a Sickle Cell charity.
"And I contributed a grand to my local community centre, to their gymnastics program, because I did gymnastics when I was a child and they required updated gear," Ms Dynamite told outlets.
Two years ago, Ezra Collective gave their funds to the local youth club that nurtured their act, in addition to other independent music bodies.
Also 1994 winners the group donated their prize to a charity for MS after a friend was diagnosed the illness.
"The victory was sufficient," remarked vocalist Heather Small. "The money was the extra but we didn't need the bonus, because we had the cake. So our victory impacted another person's life."
Recently, the Music Venues Trust revealed it had rescued a couple of local spots in that region, by transferring them to local control.
The Joiners in that area and The Croft in Bristol were purchased under the community ownership initiative, which is backed by Arts Council England and enthusiasts who acquire "ownership units" in the buildings.