The artist has donated the complete sum of his £25k honor winnings to the MVT, which functions to protect the Britain's independent music venues.
Fender was given the award on 16 October as his latest record the album was chosen as the outstanding release of the past year.
The musician has decided to give the cash to the trust, in recognition of the crucial part small stages played in his initial steps.
"As an artist wouldn't be doing this success if it weren't for all the shows I did around the area, and beyond, when I was beginning," said the artist. "These venues are iconic, but they are struggling."
Since the start of 2023, at least 150 of these spaces have ceased operations – approximately one-sixth of the whole industry in the UK.
Over the past year, major artists including Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its efforts to support the industry, by applying a small levy to their ticket prices, which goes to help local stages.
Sam Fender also took part, raising over £100k on his live tour to support 38 local spots across Britain.
The donation supported locations that were dealing with potential shutdown due to difficulties stemming from water damage, blazes and family tragedies, as well as regulatory hurdles, conflicts and noise complaints.
Additional spaces received monetary aid in upgrading infrastructure and technical equipment that positively impacted musicians and concertgoers.
"The notion that revenue from shows in large arenas helps the local stages, where it all starts for artists like me, is just sensible," Fender has said.
The musician is not the first artist to donate his Mercury Prize prize money to worthy causes.
In Pulp earned the prize in the year 1996 for their album Different Class, frontman the singer stated that the band would donate their cash to the organization the charity.
In 2002, rapper and singer the artist split her prize between several charities, such as the NSPCC and a Sickle Cell charity.
"Additionally, I gave a thousand pounds to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was a child and they required better apparatus," the artist explained to the media.
In recent years, the band donated their prize money to the community center that supported their act, as well as other local music groups.
And winners that year they gave their winnings to a MS organization after a close contact was found to have the illness.
"Winning was ample," stated artist the singer. "The money was the cherry on top but we could do without the bonus, because we had the main prize. So our winning touched another person's life."
Last week, the MVT shared it had protected two local spots in south-east England, by transferring them to public stewardship.
The Joiners in Southampton and the other in the city were acquired under the public acquisition program, which is backed by the arts council and music fans who buy "ownership units" in the buildings.
