The star has donated the entirety of his twenty-five thousand pound honor cash to the MVT, which works to protect the Britain's small live music spots.
The star was presented with the prize on October 16 as his third album People Watching was chosen as the top album of the past year.
Fender has chosen to donate the funds to the trust, in recognition of the crucial part grassroots venues played in his early career.
"As an artist couldn't be pursuing what I am doing today if it weren't for all the performances I performed around the region, and elsewhere, when I was just getting going," stated Sam Fender. "These venues are renowned, but they are facing challenges."
Beginning in 2023, over 150 of these locations have permanently closed – roughly 16 percent of the whole industry in the UK.
Recently, major artists including Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all supported the MVT in its initiatives to support the industry, by including a small levy to their ticket prices, which supports smaller concert halls.
Sam Fender also took part, collecting over £100k on his 2024 arena tour to assist 38 grassroots venues across England, Scotland, and Wales.
These funds supported venues that were confronting possible closure due to issues caused by flooding, fire incidents and family tragedies, as well as licensing issues, court cases and sound issues.
Other venues obtained financial assistance in improving facilities and gear that helped artists and audiences.
"The concept that money from shows in major spaces backs the independent spots, where it kicks off for performers like me, is just logical," Sam Fender has commented.
Fender is among several artists to give his Mercury Prize prize money to charitable organizations.
In they received the award in the mid-90s for their record the album, vocalist the singer stated that the group would contribute their cash to the charity War Child.
In 2002, musician Ms Dynamite shared her prize between multiple good causes, like the children's charity and a Sickle Cell charity.
"I also donated a £1,000 to the center, to their gymnastics program, because I trained in gymnastics when I was growing up and they lacked updated gear," the artist shared with a publication.
Two years ago, they contributed their prize money to the local youth club that supported their act, as well as other independent music bodies.
Also 1994 winners they gave their winnings to a multiple sclerosis charity after a close contact was diagnosed the disease.
"Winning was sufficient," stated singer the singer. "The cash was the bonus but we didn't need the extra, because we had the honor. So our success touched somebody else's life."
In the past week, the trust revealed it had rescued a couple of local spots in the South East, by bringing them into public stewardship.
The Joiners in Southampton and the second in the city were acquired under the community ownership program, which is backed by the arts council and supporters who acquire "shares" in the venues.