The star has handed over the entirety of his £25,000 award cash to the MVT, which works to protect the United Kingdom's grassroots music venues.
He was given the cheque on mid-October as his latest record People Watching was declared the outstanding release of the last 12 months.
Fender has opted to donate the funds to the MVT, in appreciation of the essential function small stages had in his initial steps.
"I personally would not have achieved this success if it wasn't for all the gigs I performed around the area, and beyond, when I was starting out," said Sam Fender. "These venues are legendary, but they are in difficulty."
From early 2023 onward, at least 150 of these locations have permanently closed – roughly 16% of the whole industry in the UK.
In the last year, top acts including Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all backed the trust in its attempts to support the industry, by including a minor surcharge to their ticket costs, which goes to help local stages.
Sam Fender also took part, collecting more than £100,000 on his recent tour to assist 38 small stages across England, Scotland, and Wales.
The money helped spaces that were confronting potential shutdown due to issues stemming from flooding, blazes and personal losses, as well as permit problems, conflicts and sound issues.
Some locations received financial assistance in upgrading facilities and gear that directly benefitted artists and fans.
"The idea that money from concerts in major spaces supports the smaller venues, where it begins for artists like me, is just sensible," the star has stated.
Fender is among several artists to contribute his Mercury Prize prize money to worthy causes.
When they earned the prize in the mid-90s for their record Different Class, vocalist Jarvis Cocker declared that the act would contribute their winnings to the non-profit War Child.
During 2002, artist Ms Dynamite shared her prize among several charities, including the children's charity and a Sickle Cell organization.
"And I donated a thousand pounds to my local community centre, to their gymnastics class, because I trained in gymnastics when I was a child and they needed new equipment," Ms Dynamite told outlets.
Two years ago, they donated their winnings to the local youth club that supported their band, as well as other local music groups.
Additionally the 1994 recipients they gave their winnings to a MS organization after a close contact was found to have the disease.
"Receiving the award was sufficient," remarked singer Heather Small. "The money was the extra but we didn't need the extra, because we had the main prize. So our success touched somebody else's life."
Recently, the MVT announced it had saved a couple of grassroots venues in the South East, by transferring them to public stewardship.
The first in that area and the second in that location were bought under the Own Our Venues initiative, which is backed by a national body and music fans who buy "ownership units" in the buildings.