The star has handed over the full amount of his £25,000 award prize money to the MVT, which operates to preserve the Britain's independent live music spots.
Fender was presented with the cheque on 16 October as his latest record the album was chosen as the top album of the past year.
He has decided to donate the funds to the Music Venues Trust, in acknowledgment of the vital role small stages played in his initial steps.
"I would not have achieved my current career if it wasn't for all the performances I played around the area, and elsewhere, when I was beginning," said the artist. "These venues are iconic, but they are struggling."
Beginning in 2023, more than 150 of these venues have shut down – approximately 16 percent of the whole industry in the UK.
Recently, major artists including Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all backed the trust in its attempts to help venues survive, by applying a modest fee to their ticket prices, which supports independent venues.
He also took part, collecting more than £100,000 on his live tour to support 38 local spots across the UK.
These funds helped locations that were dealing with possible closure due to issues stemming from floods, fires and personal losses, as well as regulatory hurdles, court cases and noise complaints.
Other venues were granted monetary aid in modernizing facilities and gear that positively impacted musicians and audiences.
"The idea that revenue from shows in big venues supports the smaller venues, where it begins for musicians like me, is just logical," Sam Fender has stated.
Fender is among several artists to donate his Mercury Prize funds to worthy causes.
When Pulp won the trophy in the mid-90s for their record Different Class, lead singer Jarvis Cocker stated that the group would contribute their winnings to the charity War Child.
During 2002, rapper and singer Ms Dynamite divided her bounty across several charities, including the NSPCC and a Sickle Cell charity.
"Additionally, I gave a thousand pounds to the center, to their gymnastics class, because I did gymnastics when I was younger and they lacked updated gear," the artist shared with the media.
In recent years, Ezra Collective gave their prize money to the community center that nurtured their group, as well as other local music groups.
Additionally the 1994 recipients M People contributed their award to a multiple sclerosis charity after a friend was diagnosed the illness.
"The victory was sufficient," remarked vocalist Small. "The cash was the extra but we could do without the bonus, because we had the cake. So our success impacted the lives of others."
Last week, the trust shared it had rescued several small stages in south-east England, by placing them under local control.
The Joiners in that area and the second in Bristol were bought under the public acquisition program, which is supported by Arts Council England and supporters who acquire "ownership units" in the properties.
