The star has given the full amount of his £25k award winnings to the trust for venues, which functions to preserve the Britain's independent live music spots.
Fender was awarded the prize on October 16 as his third album the album was declared the outstanding release of the past year.
He has opted to give the cash to the Music Venues Trust, in acknowledgment of the vital role grassroots venues had in his early career.
"As an artist couldn't be pursuing this success if it hadn't been for all the shows I did around the area, and beyond, when I was starting out," stated Sam Fender. "These spaces are renowned, but they are facing challenges."
Beginning in 2023, over 150 of these venues have permanently closed – roughly 16% of the total UK scene.
In the last year, major artists including Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all supported the trust in its efforts to help venues survive, by adding a minor surcharge to their admission fees, which supports local stages.
He also participated, collecting over £100k on his recent tour to help 38 local spots across the UK.
The donation supported venues that were dealing with potential shutdown due to difficulties arising from water damage, blazes and personal losses, as well as licensing issues, conflicts and sound issues.
Additional spaces were granted funding support in improving infrastructure and sound and lighting systems that positively impacted musicians and concertgoers.
"The notion that funds from shows in big venues helps the independent spots, where it kicks off for performers like me, is just sensible," the star has said.
He is not the first artist to give his Mercury Prize prize money to charitable organizations.
In Pulp won the prize in the year 1996 for their album the album, vocalist the singer announced that the act would donate their cash to the charity War Child.
During 2002, musician she divided her award across multiple good causes, including the children's charity and a Sickle Cell organization.
"I also contributed a grand to Highgate Newtown, to their classes, because I did gymnastics when I was younger and they lacked updated gear," Ms Dynamite explained to a publication.
Previously, the band gave their prize money to the community center that supported their band, in addition to other grassroots music organisations.
Additionally the 1994 recipients M People donated their award to a charity for MS after a acquaintance was identified with the condition.
"The victory was ample," stated artist Small. "The money was the cherry on top but we didn't need the bonus, because we had the main prize. So our victory affected the lives of others."
In the past week, the trust shared it had rescued two local spots in that region, by transferring them to local control.
The first in the city and the second in the city were purchased under the public acquisition scheme, which is backed by a national body and supporters who purchase "shares" in the buildings.