The star has given the full amount of his £25,000 award winnings to the MVT, which works to save the Britain's grassroots music venues.
He was presented with the cheque on 16 October as his third album the album was declared the top album of the last 12 months.
Fender has opted to hand the money over to the trust, in appreciation of the essential function local spots had in his early career.
"I couldn't be pursuing what I am doing today if it hadn't been for all the gigs I played around the region, and beyond, when I was starting out," remarked Fender. "These venues are renowned, but they are struggling."
From early 2023 onward, more than 150 of these spaces have ceased operations – approximately one-sixth of the total UK scene.
Recently, top acts including the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its initiatives to support the industry, by including a minor surcharge to their ticket costs, which supports local stages.
Fender also joined in, collecting over £100k on his live tour to support numerous local spots across England, Scotland, and Wales.
These funds assisted spaces that were confronting possible closure due to issues caused by water damage, blazes and family tragedies, as well as permit problems, conflicts and sound issues.
Additional spaces received financial assistance in improving facilities and technical equipment that helped artists and concertgoers.
"The idea that money from performances in major spaces backs the smaller venues, where it all starts for musicians like me, is just logical," Sam Fender has stated.
The musician is not the first artist to give his Mercury Prize winnings to worthy causes.
When the band received the trophy in the year 1996 for their record Different Class, lead singer Jarvis Cocker stated that the group would contribute their cash to the non-profit the charity.
That year, artist she split her bounty across multiple charities, including the children's charity and a Sickle Cell charity.
"And I contributed a £1,000 to the center, to their classes, because I trained in gymnastics when I was a child and they lacked new equipment," Ms Dynamite explained to outlets.
Previously, they gave their funds to the local youth club that supported their group, alongside other local music groups.
And winners that year the group gave their winnings to a MS organization after a friend was identified with the condition.
"The victory was sufficient," remarked singer Heather Small. "The prize was the cherry on top but we didn't need the cherry, because we had the honor. So our success impacted somebody else's life."
Recently, the Music Venues Trust announced it had rescued two grassroots venues in south-east England, by placing them under community ownership.
The first in Southampton and The Croft in the city were bought under the public acquisition program, which is supported by a national body and music fans who purchase "ownership units" in the buildings.