The artist has handed over the full amount of his £25,000 honor cash to the MVT, which works to preserve the Britain's small music venues.
The star was awarded the prize on mid-October as his latest record the album was named the best record of the previous year.
Fender has decided to donate the funds to the trust, in acknowledgment of the crucial part local spots had in his initial steps.
"I personally would not have achieved what I am doing today if it weren't for all the shows I performed around the area, and further afield, when I was just getting going," said the artist. "These spaces are iconic, but they are struggling."
Beginning in 2023, over 150 of these spaces have shut down – approximately 16 percent of the entire UK sector.
Recently, top acts including the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its attempts to support the industry, by applying a minor surcharge to their ticket prices, which goes to help smaller concert halls.
Sam Fender also took part, generating in excess of £100,000 on his 2024 arena tour to help 38 local spots across Britain.
The donation helped spaces that were confronting possible closure due to challenges caused by water damage, fire incidents and personal losses, as well as licensing issues, court cases and noise complaints.
Some locations obtained financial assistance in improving facilities and sound and lighting systems that positively impacted performers and audiences.
"The idea that funds from performances in major spaces supports the local stages, where it begins for musicians like me, is just common sense," Sam Fender has said.
Fender is not the first artist to contribute his Mercury Prize funds to charitable organizations.
Back when Pulp won the trophy in 1996 for their release their work, frontman the singer stated that the group would give their cash to the non-profit War Child.
During 2002, artist she divided her bounty between multiple good causes, such as the NSPCC and a charity for Sickle Cell.
"And I gave a grand to my local community centre, to their gymnastics class, because I did gymnastics when I was a child and they needed better apparatus," Ms Dynamite shared with the media.
In recent years, the band contributed their prize money to the community center that supported their act, in addition to other local music groups.
Additionally 1994 winners they contributed their winnings to a multiple sclerosis charity after a acquaintance was identified with the illness.
"Winning was ample," remarked singer the singer. "The prize was the extra but we didn't need the bonus, because we had the cake. So our winning affected somebody else's life."
Last week, the MVT shared it had rescued several small stages in the South East, by transferring them to public stewardship.
The Joiners in the city and the second 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 properties.