The star has given the full amount of his £25,000 honor winnings to the trust for venues, which functions to preserve the UK's grassroots music venues.
Fender was presented with the award on October 16 as his new release the album was named the top album of the previous year.
He has chosen to donate the funds to the MVT, in acknowledgment of the essential function grassroots venues fulfilled in his early career.
"I personally wouldn't be doing this success if it wasn't for all the gigs I played around the area, and elsewhere, when I was beginning," stated Sam Fender. "These venues are iconic, but they are struggling."
Beginning in 2023, over 150 of these venues have permanently closed – roughly one-sixth of the total UK scene.
In the last year, well-known musicians including Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its attempts to help venues survive, by adding a minor surcharge to their ticket costs, which goes to help smaller concert halls.
He also took part, generating more than £100,000 on his 2024 arena tour to support 38 local spots across England, Scotland, and Wales.
The money helped locations that were facing potential shutdown due to issues arising from flooding, fires and bereavements, as well as licensing issues, legal disputes and sound issues.
Some locations obtained monetary aid in upgrading facilities and gear that positively impacted artists and fans.
"The concept that money from shows in major spaces helps the smaller venues, where it begins for musicians like me, is just logical," Fender has commented.
Fender is far from the only musician to contribute his Mercury Prize prize money to charitable organizations.
When they received the trophy in the year 1996 for their record the album, frontman Jarvis Cocker announced that the act would contribute their cash to the non-profit War Child.
That year, rapper and singer the artist shared her prize across several charities, like the children's charity and a Sickle Cell organization.
"And I donated a thousand pounds to the center, to their gymnastics program, because I did gymnastics when I was a child and they needed new equipment," the artist explained to the media.
Previously, Ezra Collective donated their prize money to the local youth club that developed their group, alongside other independent music bodies.
And 1994 winners the group contributed their winnings to a multiple sclerosis charity after a close contact was diagnosed the illness.
"Winning was ample," remarked vocalist the singer. "The prize was the cherry on top but we could do without the extra, because we had the honor. So our success touched somebody else's life."
Recently, the trust announced it had rescued several small stages in that region, by placing them under community ownership.
The first in the city and the other in Bristol were bought under the Own Our Venues initiative, which is backed by Arts Council England and supporters who acquire "ownership units" in the buildings.