The artist has donated the entirety of his £25k honor prize money to the MVT, which works to preserve the UK's grassroots live music spots.
He was given the cheque on mid-October as his third album People Watching was declared the top album of the last 12 months.
Fender has chosen to donate the funds to the Music Venues Trust, in recognition of the vital role grassroots venues had in his early career.
"As an artist couldn't be pursuing my current career if it weren't for all the performances I performed around the region, and elsewhere, when I was starting out," remarked Sam Fender. "These spaces are renowned, but they are facing challenges."
From early 2023 onward, over 150 of these locations have shut down – approximately 16 percent of the entire UK sector.
In the last year, major artists including Pulp, Coldplay, the singer Katy Perry and Sheeran have all aided the trust in its attempts to keep the scene afloat, by applying a modest fee to their admission fees, which supports local stages.
Sam Fender also participated, raising in excess of £100,000 on his live tour to support 38 small stages across the UK.
The money assisted venues that were confronting potential shutdown due to challenges stemming from flooding, fires and family tragedies, as well as regulatory hurdles, legal disputes and noise complaints.
Some locations received funding support in upgrading infrastructure and technical equipment that directly benefitted artists and concertgoers.
"The concept that funds from shows in big venues supports the independent spots, where it begins for musicians like me, is just sensible," Sam Fender has stated.
The musician is among several artists to contribute his Mercury Prize winnings to worthy causes.
When the band earned the prize in the year 1996 for their record the album, frontman Jarvis Cocker stated that the group would donate their cash to the charity War Child.
In 2002, rapper and singer she shared her award among several charities, including the NSPCC and a Sickle Cell organization.
"Additionally, I contributed a £1,000 to Highgate Newtown, to their gymnastics class, because I trained in gymnastics when I was growing up and they needed updated gear," Ms Dynamite told outlets.
Previously, Ezra Collective donated their winnings to the local youth club that developed their group, as well as other independent music bodies.
Additionally winners that year the group contributed their winnings to a multiple sclerosis charity after a acquaintance was identified with the condition.
"Receiving the award was quite enough," stated artist Small. "The money was the cherry on top but we could do without the cherry, because we had the honor. So our success touched the lives of others."
Last week, the MVT shared it had saved several small stages in the South East, by placing them under public stewardship.
The Joiners in that area and the other in that location were bought under the Own Our Venues scheme, which is funded by a national body and enthusiasts who buy "stakes" in the venues.