The star has given the entirety of his twenty-five thousand pound honor prize money to the MVT, which operates to protect the Britain's small live music spots.
The star was given the award on 16 October as his latest record his work was named the best record of the last 12 months.
The musician has chosen to give the cash to the Music Venues Trust, in acknowledgment of the crucial part grassroots venues had in his initial steps.
"As an artist wouldn't be doing this success if it hadn't been for all the gigs I did around the North East, and further afield, when I was beginning," stated Fender. "These spaces are renowned, but they are facing challenges."
From early 2023 onward, at least 150 of these locations have permanently closed – approximately one-sixth of the total UK scene.
Over the past year, major artists including Pulp, the group Coldplay, Katy Perry and Sheeran have all backed the MVT in its attempts to help venues survive, by including a small levy to their ticket prices, which benefits independent venues.
Sam Fender also joined in, generating over £100k on his 2024 arena tour to support numerous grassroots venues across Britain.
The donation assisted spaces that were confronting potential shutdown due to difficulties stemming from flooding, fire incidents and family tragedies, as well as licensing issues, conflicts and noise complaints.
Additional spaces obtained financial assistance in improving amenities and gear that helped performers and concertgoers.
"The notion that funds from concerts in big venues backs the independent spots, where it begins for artists like me, is just sensible," Fender has said.
Fender is far from the only musician to donate his Mercury Prize winnings to worthy causes.
When they won the trophy in the mid-90s for their release their work, lead singer Cocker declared that the group would contribute their winnings to the charity War Child.
That year, artist Ms Dynamite shared her prize among a few organizations, like the NSPCC and a Sickle Cell charity.
"I also gave a grand to the center, to their classes, because I practiced gymnastics when I was growing up and they needed new equipment," Ms Dynamite explained to outlets.
Two years ago, the band donated their funds to the community center that developed their group, in addition to other independent music bodies.
Also 1994 winners the group gave their award to a MS organization after a acquaintance was identified with the illness.
"The victory was ample," stated vocalist the singer. "The money was the cherry on top but we could do without the extra, because we had the cake. So our success affected the lives of others."
In the past week, the trust announced it had protected two local spots in the South East, by bringing them into local control.
The Joiners in Southampton and the other in Bristol were acquired under the Own Our Venues scheme, which is funded by a national body and music fans who acquire "ownership units" in the venues.