The artist has given the entirety of his twenty-five thousand pound award cash to the trust for venues, which functions to preserve the United Kingdom's small music venues.
Fender was given the prize on 16 October as his third album his work was declared the outstanding release of the past year.
The musician has chosen to give the cash to the Music Venues Trust, in appreciation of the crucial part local spots played in his beginning days.
"I couldn't be pursuing this success if it weren't for all the shows I played around the North East, and beyond, when I was beginning," remarked Fender. "These venues are iconic, but they are facing challenges."
Beginning in 2023, more than 150 of these venues have ceased operations – approximately 16 percent of the entire UK sector.
Recently, top acts such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its initiatives to keep the scene afloat, by applying a minor surcharge to their admission fees, which goes to help smaller concert halls.
Sam Fender also participated, generating in excess of £100,000 on his recent tour to support numerous small stages across the UK.
The money assisted spaces that were confronting imminent closure due to difficulties arising from floods, fire incidents and bereavements, as well as permit problems, court cases and sound issues.
Some locations received monetary aid in improving facilities and gear that directly benefitted artists and fans.
"The idea that funds from performances in major spaces supports the independent spots, where it all starts for artists like me, is just common sense," Sam Fender has said.
The musician is among several artists to give his Mercury Prize prize money to worthy causes.
Back when Pulp received the award in the mid-90s for their record Different Class, vocalist Cocker declared that the band would donate their cash to the non-profit War Child.
That year, artist the artist split her award among several organizations, such as the NSPCC and a Sickle Cell charity.
"And I gave a thousand pounds to my local community centre, to their gymnastics program, because I trained in gymnastics when I was growing up and they lacked new equipment," Ms Dynamite told outlets.
Previously, they gave their winnings to the youth organization that supported their group, in addition to other local music groups.
Additionally the 1994 recipients the group gave their prize to a MS organization after a acquaintance was identified with the disease.
"Winning was ample," said artist Heather Small. "The cash was the bonus but we didn't need the cherry, because we had the honor. So our victory impacted the lives of others."
Recently, the trust announced it had protected several grassroots venues in the South East, by bringing them into community ownership.
The first in Southampton and the second in the city were purchased under the community ownership program, which is funded by a national body and music fans who purchase "shares" in the properties.