The star has given the complete sum of his £25,000 award cash to the trust for venues, which works to protect the United Kingdom's small music venues.
The star was presented with the award on mid-October as his third album his work was chosen as the best record of the last 12 months.
Fender has decided to donate the funds to the Music Venues Trust, in appreciation of the crucial part local spots had in his beginning days.
"I would not have achieved my current career if it weren't for all the gigs I played around the area, and further afield, when I was just getting going," said Fender. "These locations are renowned, but they are struggling."
Beginning in 2023, at least 150 of these venues have permanently closed – approximately one-sixth of the entire UK sector.
In the last year, well-known musicians including the band Pulp, the group Coldplay, Katy Perry and Sheeran have all supported the trust in its initiatives to support the industry, by including a minor surcharge to their ticket costs, which goes to help local stages.
Sam Fender also took part, raising more than £100,000 on his live tour to assist numerous local spots across Britain.
The money helped spaces that were facing possible closure due to challenges arising from flooding, blazes and personal losses, as well as licensing issues, court cases and sound issues.
Other venues were granted funding support in modernizing amenities and technical equipment that positively impacted musicians and concertgoers.
"The idea that money from performances in major spaces helps the local stages, where it kicks off for performers like me, is just common sense," Sam Fender has commented.
Fender is far from the only musician to donate his Mercury Prize winnings to charitable organizations.
When the band earned the prize in the mid-90s for their release Different Class, frontman Jarvis Cocker declared that the band would contribute their winnings to the charity the charity.
During 2002, artist Ms Dynamite divided her award between several organizations, like the children's charity and a charity for Sickle Cell.
"I also gave a thousand pounds to the center, to their classes, because I practiced gymnastics when I was a child and they needed better apparatus," Ms Dynamite shared with the media.
Two years ago, Ezra Collective gave their prize money to the youth organization that supported their act, as well as other grassroots music organisations.
Also 1994 winners the group gave their award to a MS organization after a acquaintance was diagnosed the disease.
"Winning was sufficient," remarked artist Heather Small. "The money was the extra but we could do without the bonus, because we had the cake. So our success touched somebody else's life."
Last week, the trust shared it had protected two local spots in the South East, by bringing them into community ownership.
One venue in the city and The Croft in that location were bought under the Own Our Venues initiative, which is supported by a national body and supporters who acquire "ownership units" in the venues.
