The artist has handed over the entirety of his £25,000 award winnings to the MVT, which operates to save the UK's small music venues.
He was awarded the award on 16 October as his new release People Watching was declared the best record of the past year.
Fender has chosen to give the cash to the trust, in recognition of the essential function small stages played in his initial steps.
"I couldn't be pursuing what I am doing today if it wasn't for all the shows I performed around the area, and elsewhere, when I was starting out," stated Fender. "These venues are legendary, but they are struggling."
Since the start of 2023, more than 150 of these venues have ceased operations – about 16% of the whole industry in the UK.
Over the past year, top acts including the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all backed the trust in its initiatives to keep the scene afloat, by adding a small levy to their admission fees, which supports local stages.
Fender also joined in, generating over £100k on his recent tour to help 38 small stages across England, Scotland, and Wales.
The donation assisted venues that were dealing with imminent closure due to issues arising from flooding, blazes and personal losses, as well as regulatory hurdles, court cases and noise complaints.
Other venues received funding support in upgrading amenities and technical equipment that positively impacted performers and fans.
"The idea that revenue from concerts in large arenas supports the independent spots, where it all starts for performers like me, is just common sense," Sam Fender has commented.
Fender is not the first artist to contribute his Mercury Prize winnings to charitable organizations.
When the band earned the trophy in the mid-90s for their release their work, vocalist the singer declared that the group would donate their prize money to the organization War Child.
During 2002, artist Ms Dynamite divided her bounty across multiple charities, such as the children's charity and a Sickle Cell charity.
"Additionally, I donated a grand to Highgate Newtown, to their gymnastics program, because I trained in gymnastics when I was younger and they lacked better apparatus," the artist explained to a publication.
Previously, Ezra Collective contributed their winnings to the local youth club that supported their group, in addition to other grassroots music organisations.
Additionally winners that year they gave their winnings to a charity for MS after a close contact was identified with the condition.
"The victory was sufficient," said singer the singer. "The money was the bonus but we could do without the cherry, because we had the cake. So our success affected another person's life."
Last week, the trust revealed it had rescued several local spots in south-east England, by bringing them into local control.
One venue in Southampton and The Croft in the city were purchased under the public acquisition initiative, which is backed by Arts Council England and music fans who purchase "ownership units" in the properties.
