The star has given the full amount of his £25,000 award prize money to the trust for venues, which operates to preserve the Britain's independent concert spaces.
Fender was given the award on mid-October as his third album his work was named the best record of the previous year.
He has decided to donate the funds to the MVT, in appreciation of the essential function grassroots venues played in his early career.
"I personally wouldn't be doing this success if it wasn't for all the performances I performed around the region, and elsewhere, when I was just getting going," said Sam Fender. "These spaces are renowned, but they are in difficulty."
From early 2023 onward, more than 150 of these venues have ceased operations – about 16% of the total UK scene.
In the last year, major artists such as the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the trust in its initiatives to help venues survive, by adding a modest fee to their ticket costs, which supports smaller concert halls.
He also joined in, raising over £100k on his 2024 arena tour to help 38 small stages across Britain.
The money helped venues that were dealing with potential shutdown due to issues stemming from flooding, blazes and personal losses, as well as regulatory hurdles, legal disputes and neighbor objections.
Some locations obtained financial assistance in upgrading infrastructure and gear that helped musicians and concertgoers.
"The idea that revenue from concerts in large arenas supports the smaller venues, where it kicks off for performers like me, is just common sense," the star has said.
The musician is not the first artist to donate his Mercury Prize prize money to good deeds.
Back when the band won the trophy in the year 1996 for their record their work, lead singer Jarvis Cocker stated that the group would contribute their cash to the charity War Child.
During 2002, rapper and singer the artist split her prize between several organizations, such as the NSPCC and a Sickle Cell charity.
"Additionally, I contributed a thousand pounds to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was younger and they required better apparatus," Ms Dynamite shared with the media.
In recent years, they contributed their winnings to the community center that developed their band, as well as other local music groups.
Also 1994 winners they contributed their prize to a charity for MS after a close contact was identified with the disease.
"Winning was quite enough," stated artist Heather Small. "The money was the extra but we didn't require the extra, because we had the main prize. So our success touched the lives of others."
Last week, the Music Venues Trust revealed it had protected two small stages in south-east England, by placing them under community ownership.
The first in that area and the other in the city were bought under the public acquisition scheme, which is backed by a national body and enthusiasts who acquire "ownership units" in the buildings.