The artist has donated the complete sum of his £25k award winnings to the MVT, which functions to preserve the Britain's grassroots live music spots.
Fender was awarded the award on 16 October as his third album People Watching was chosen as the outstanding release of the last 12 months.
He has decided to donate the funds to the MVT, in acknowledgment of the crucial part small stages had in his beginning days.
"I couldn't be pursuing what I am doing today if it weren't for all the performances I played around the area, and further afield, when I was starting out," stated Sam Fender. "These venues are legendary, but they are facing challenges."
Beginning in 2023, at least 150 of these spaces have shut down – about 16 percent of the whole industry in the UK.
Over the past year, major artists including Pulp, Coldplay, the singer Katy Perry and Sheeran have all backed the MVT in its initiatives to keep the scene afloat, by adding a minor surcharge to their ticket prices, which goes to help independent venues.
Sam Fender also took part, generating more than £100,000 on his 2024 arena tour to help numerous small stages across England, Scotland, and Wales.
The donation helped spaces that were facing possible closure due to issues stemming from floods, fire incidents and personal losses, as well as permit problems, conflicts and neighbor objections.
Some locations received funding support in improving facilities and gear that positively impacted musicians and concertgoers.
"The idea that revenue from concerts in big venues helps the smaller venues, where it kicks off for performers like me, is just logical," the star has commented.
The musician is not the first artist to give his Mercury Prize winnings to worthy causes.
When Pulp received the prize in the mid-90s for their record their work, frontman the singer declared that the band would donate their prize money to the non-profit War Child.
During 2002, rapper and singer Ms Dynamite shared her bounty among a few charities, including the children's charity and a charity for Sickle Cell.
"I also contributed a thousand pounds to Highgate Newtown, to their classes, because I practiced gymnastics when I was a child and they required new equipment," she shared with a publication.
Two years ago, Ezra Collective contributed their winnings to the youth organization that developed their group, in addition to other independent music bodies.
And 1994 winners the group donated their prize to a MS organization after a close contact was found to have the disease.
"The victory was sufficient," stated vocalist the singer. "The money was the bonus but we didn't require the bonus, because we had the cake. So our success impacted somebody else's life."
Last week, the Music Venues Trust shared it had protected a couple of grassroots venues in south-east England, by placing them under public stewardship.
One venue in Southampton and The Croft in Bristol were purchased under the community ownership program, which is backed by Arts Council England and music fans who acquire "ownership units" in the venues.