The star has given the entirety of his twenty-five thousand pound award prize money to the trust for venues, which operates to protect the UK's independent music venues.
Fender was presented with the prize on October 16 as his new release People Watching was declared the best record of the previous year.
Fender has decided to donate the funds to the MVT, in recognition of the vital role grassroots venues had in his beginning days.
"As an artist couldn't be pursuing what I am doing today if it weren't for all the performances I did around the area, and elsewhere, when I was starting out," remarked Fender. "These locations are iconic, but they are facing challenges."
Since the start of 2023, over 150 of these locations have ceased operations – roughly one-sixth of the total UK scene.
Over the past year, well-known musicians such as Pulp, Coldplay, the singer Katy Perry and Sheeran have all aided the Music Venues Trust in its initiatives to support the industry, by including a modest fee to their ticket prices, which benefits local stages.
He also participated, raising over £100k on his live tour to assist 38 local spots across Britain.
The money assisted locations that were facing imminent closure due to challenges stemming from floods, blazes and personal losses, as well as licensing issues, legal disputes and noise complaints.
Other venues received financial assistance in upgrading amenities and sound and lighting systems that positively impacted artists and fans.
"The idea that revenue from performances in large arenas supports the independent spots, where it all starts for artists like me, is just common sense," Sam Fender has stated.
Fender is not the first artist to give his Mercury Prize winnings to worthy causes.
When they won the trophy in 1996 for their release their work, lead singer Jarvis Cocker declared that the act would contribute their cash to the organization the charity.
That year, artist Ms Dynamite shared her award across multiple charities, like the children's charity and a charity for Sickle Cell.
"Additionally, I gave a thousand pounds to Highgate Newtown, to their gymnastics program, because I did gymnastics when I was growing up and they required updated gear," she shared with a publication.
In recent years, Ezra Collective contributed their funds to the community center that supported their group, in addition to other independent music bodies.
Additionally winners that year M People donated their winnings to a multiple sclerosis charity after a acquaintance was diagnosed the condition.
"Winning was quite enough," remarked vocalist the singer. "The prize was the bonus but we could do without the extra, because we had the main prize. So our success touched the lives of others."
Last week, the Music Venues Trust announced it had rescued several local spots in the South East, by transferring them to public stewardship.
One venue in the city and the second in Bristol were bought under the community ownership scheme, which is funded by Arts Council England and supporters who acquire "stakes" in the venues.