The artist has handed over the entirety of his £25k award cash to the trust for venues, which operates to preserve the UK's independent live music spots.
Fender was given the prize on mid-October as his third album the album was named the outstanding release of the last 12 months.
Fender has decided to give the cash to the Music Venues Trust, in acknowledgment of the vital role small stages had in his initial steps.
"As an artist would not have achieved what I am doing today if it wasn't for all the performances I played around the region, and beyond, when I was beginning," stated the artist. "These venues are renowned, but they are facing challenges."
Since the start of 2023, more than 150 of these spaces have ceased operations – approximately 16% of the entire UK sector.
In the last year, well-known musicians including the band Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all aided the trust in its attempts to help venues survive, by including a small levy to their ticket prices, which benefits smaller concert halls.
Sam Fender also joined in, collecting in excess of £100,000 on his recent tour to support thirty-eight local spots across England, Scotland, and Wales.
These funds supported venues that were facing imminent closure due to difficulties caused by water damage, fires and family tragedies, as well as regulatory hurdles, legal disputes and noise complaints.
Some locations were granted financial assistance in improving infrastructure and gear that positively impacted artists and audiences.
"The notion that money from shows in large arenas supports the smaller venues, where it begins for musicians like me, is just logical," the star has said.
The musician is among several artists to donate his Mercury Prize prize money to good deeds.
Back when Pulp earned the prize in the year 1996 for their release the album, lead singer Cocker declared that the act would give their prize money to the organization War Child.
During 2002, artist she shared her bounty among several charities, like the NSPCC and a charity for Sickle Cell.
"Additionally, I donated a grand to the center, to their gymnastics class, because I trained in gymnastics when I was younger and they required better apparatus," she explained to the media.
Two years ago, the band donated their winnings to the youth organization that developed their band, alongside other grassroots music organisations.
Additionally 1994 winners M People contributed their winnings to a charity for MS after a close contact was found to have the illness.
"Receiving the award was sufficient," said singer Small. "The cash was the cherry on top but we could do without the cherry, because we had the cake. So our victory affected the lives of others."
Recently, the trust announced it had protected a couple of local spots in the South East, by bringing them into local control.
The Joiners in the city and The Croft in Bristol were purchased under the public acquisition program, which is funded by Arts Council England and supporters who acquire "stakes" in the venues.
