The star has given the complete sum of his £25k honor cash to the trust for venues, which operates to save the UK's grassroots concert spaces.
He was awarded the prize on October 16 as his new release People Watching was declared the best record of the previous year.
He has opted to hand the money over to the Music Venues Trust, in acknowledgment of the vital role local spots fulfilled in his beginning days.
"I couldn't be pursuing my current career if it weren't for all the gigs I played around the region, and beyond, when I was starting out," said Sam Fender. "These venues are renowned, but they are struggling."
From early 2023 onward, over 150 of these venues have ceased operations – about 16 percent of the entire UK sector.
Over the past year, well-known musicians such as the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its efforts to support the industry, by applying a small levy to their ticket costs, which supports local stages.
Sam Fender also participated, collecting more than £100,000 on his live tour to help 38 grassroots venues across Britain.
These funds assisted locations that were confronting imminent closure due to issues caused by floods, fire incidents and bereavements, as well as regulatory hurdles, court cases and noise complaints.
Other venues were granted funding support in improving amenities and sound and lighting systems that directly benefitted performers and audiences.
"The idea that funds from performances in large arenas backs the smaller venues, where it begins for artists like me, is just common sense," Sam Fender has stated.
Fender is not the first artist to donate his Mercury Prize funds to charitable organizations.
Back when they earned the prize in 1996 for their album the album, lead singer the singer declared that the group would contribute their winnings to the non-profit the charity.
That year, rapper and singer the artist split her bounty among multiple good causes, such as the NSPCC and a Sickle Cell organization.
"And I donated a thousand pounds to my local community centre, to their classes, because I practiced gymnastics when I was younger and they lacked new equipment," Ms Dynamite explained to a publication.
Two years ago, the band contributed their prize money to the youth organization that nurtured their act, in addition to other grassroots music organisations.
Additionally winners that year the group contributed their award to a charity for MS after a friend was diagnosed the illness.
"Winning was quite enough," said vocalist the singer. "The money was the extra but we didn't need the bonus, because we had the honor. So our success touched the lives of others."
In the past week, the trust announced it had saved several small stages in the South East, by placing them under local control.
One venue in that area and the second in Bristol were purchased under the Own Our Venues initiative, which is supported by a national body and supporters who purchase "stakes" in the venues.
