The star has donated the full amount of his £25k honor winnings to the MVT, which functions to save the UK's grassroots live music spots.
He was awarded the cheque on 16 October as his third album People Watching was chosen as the best record of the past year.
He has chosen to hand the money over to the MVT, in acknowledgment of the essential function small stages played in his initial steps.
"I would not have achieved what I am doing today if it weren't for all the performances I performed around the region, and beyond, when I was beginning," stated the artist. "These spaces are renowned, but they are in difficulty."
Beginning in 2023, over 150 of these spaces have ceased operations – about 16 percent of the entire UK sector.
Recently, top acts like Pulp, the group Coldplay, Katy Perry and Sheeran have all aided the MVT in its attempts to help venues survive, by adding a modest fee to their admission fees, which benefits independent venues.
Sam Fender also joined in, generating over £100k on his live tour to assist numerous small stages across Britain.
The money helped venues that were confronting potential shutdown due to challenges caused by floods, fire incidents and bereavements, as well as licensing issues, conflicts and noise complaints.
Additional spaces received funding support in improving facilities and sound and lighting systems that helped musicians and concertgoers.
"The concept that revenue from shows in major spaces helps the local stages, where it kicks off for artists like me, is just sensible," Fender has stated.
The musician is not the first artist to contribute his Mercury Prize prize money to charitable organizations.
When Pulp earned the prize in the mid-90s for their release the album, lead singer the singer declared that the group would contribute their cash 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 Sickle Cell organization.
"I also gave a £1,000 to the center, to their gymnastics program, because I did gymnastics when I was a child and they required better apparatus," Ms Dynamite told outlets.
Two years ago, the band donated their funds to the youth organization that nurtured their act, as well as other grassroots music organisations.
And winners that year they gave their prize to a charity for MS after a acquaintance was identified with the condition.
"Winning was sufficient," remarked singer the singer. "The prize was the cherry on top but we didn't need the bonus, because we had the main prize. So our success touched another person's life."
In the past week, the Music Venues Trust revealed it had protected two local spots in that region, by bringing them into community ownership.
One venue in Southampton and the second in the city were bought under the public acquisition scheme, which is funded by the arts council and enthusiasts who purchase "shares" in the venues.
