The artist has donated the complete sum of his twenty-five thousand pound honor cash to the trust for venues, which works to preserve the Britain's independent concert spaces.
Fender was presented with the prize on October 16 as his latest record his work was declared the top album of the past year.
Fender has decided to hand the money over to the MVT, in recognition of the vital role local spots played in his early career.
"As an artist wouldn't be doing this success if it hadn't been for all the performances I did around the area, and beyond, when I was just getting going," said the artist. "These venues are legendary, but they are in difficulty."
From early 2023 onward, more than 150 of these locations have shut down – approximately 16 percent of the whole industry in the UK.
Recently, top acts including the band Pulp, the group Coldplay, Katy Perry and Sheeran have all supported the MVT in its efforts to help venues survive, by including a minor surcharge to their ticket prices, which supports smaller concert halls.
Fender also joined in, raising more than £100,000 on his recent tour to support thirty-eight small stages across the UK.
The money supported venues that were confronting potential shutdown due to challenges stemming from floods, fire incidents and family tragedies, as well as regulatory hurdles, court cases and sound issues.
Some locations received monetary aid in improving amenities and sound and lighting systems that positively impacted musicians and concertgoers.
"The concept that revenue from shows in large arenas backs the smaller venues, where it all starts for artists like me, is just common sense," Sam Fender has commented.
The musician is among several artists to donate his Mercury Prize funds to good deeds.
In Pulp earned the prize in 1996 for their release Different Class, vocalist Jarvis Cocker stated that the act would contribute their winnings to the organization War Child.
In 2002, rapper and singer Ms Dynamite split her prize between a few good causes, such as the NSPCC and a charity for Sickle Cell.
"And I gave a £1,000 to the center, to their gymnastics class, because I did gymnastics when I was a child and they needed better apparatus," she shared with a publication.
Previously, Ezra Collective contributed their funds to the youth organization that supported their act, in addition to other independent music bodies.
And the 1994 recipients they gave their prize to a multiple sclerosis charity after a acquaintance was diagnosed the illness.
"The victory was quite enough," remarked singer Small. "The cash was the extra but we didn't need the cherry, because we had the main prize. So our success impacted another person's life."
Last week, the MVT announced it had saved two grassroots venues in the South East, by bringing them into local control.
The Joiners in that area and the second in that location were acquired under the Own Our Venues program, which is supported by Arts Council England and supporters who acquire "ownership units" in the venues.