The artist has donated the entirety of his £25k award cash to the MVT, which functions to preserve the United Kingdom's independent live music spots.
He was presented with the cheque on mid-October as his latest record his work was chosen as the best record of the past year.
The musician has chosen to give the cash to the Music Venues Trust, in acknowledgment of the vital role local spots had in his beginning days.
"I couldn't be pursuing my current career if it hadn't been for all the shows I played around the area, and beyond, when I was beginning," said Fender. "These venues are legendary, but they are struggling."
From early 2023 onward, more than 150 of these spaces have ceased operations – about 16% of the whole industry in the UK.
In the last year, major artists such as Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all aided the MVT in its attempts to help venues survive, by including a small levy to their ticket prices, which goes to help independent venues.
Sam Fender also joined in, generating in excess of £100,000 on his live tour to help 38 small stages across England, Scotland, and Wales.
The donation helped venues that were confronting possible closure due to issues arising from floods, fires and family tragedies, as well as permit problems, court cases and neighbor objections.
Additional spaces obtained monetary aid in improving amenities and technical equipment that positively impacted artists and audiences.
"The idea that funds from shows in big venues helps the independent spots, where it kicks off for artists like me, is just logical," the star has stated.
Fender is not the first artist to give his Mercury Prize winnings to charitable organizations.
When they earned the prize in the year 1996 for their record their work, frontman the singer stated that the band would contribute their winnings to the non-profit War Child.
In 2002, artist the artist shared her award among a few charities, like the NSPCC and a Sickle Cell charity.
"And I donated a thousand pounds to the center, to their classes, because I practiced gymnastics when I was younger and they needed better apparatus," Ms Dynamite told outlets.
Previously, Ezra Collective gave their prize money to the community center that nurtured their group, alongside other independent music bodies.
And the 1994 recipients the group gave their award to a charity for MS after a close contact was identified with the disease.
"Winning was quite enough," said vocalist Small. "The prize was the cherry on top but we could do without the extra, because we had the cake. So our victory affected the lives of others."
In the past week, the Music Venues Trust announced it had protected two local spots in the South East, by transferring them to public stewardship.
One venue in the city and the other in Bristol were acquired under the community ownership initiative, which is supported by the arts council and music fans who buy "stakes" in the venues.