The artist has handed over the full amount of his £25,000 honor cash to the trust for venues, which works to save the UK's grassroots concert spaces.
The star was given the cheque on October 16 as his new release People Watching was chosen as the top album of the last 12 months.
Fender has decided to donate the funds to the MVT, in appreciation of the crucial part small stages had in his beginning days.
"I personally would not have achieved what I am doing today if it hadn't been for all the performances I performed around the region, and elsewhere, when I was starting out," remarked Fender. "These venues are legendary, but they are in difficulty."
From early 2023 onward, more than 150 of these spaces have shut down – about 16 percent of the whole industry in the UK.
Recently, top acts like Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its initiatives to help venues survive, by applying a minor surcharge to their ticket costs, which benefits smaller concert halls.
Fender also participated, collecting more than £100,000 on his live tour to help 38 small stages across the UK.
These funds assisted spaces that were confronting possible closure due to challenges caused by floods, fires and bereavements, as well as licensing issues, court cases and neighbor objections.
Some locations were granted funding support in upgrading infrastructure and sound and lighting systems that positively impacted artists and audiences.
"The idea that revenue from concerts in big venues backs the independent spots, where it kicks off for performers like me, is just logical," Sam Fender has said.
He is not the first artist to donate his Mercury Prize prize money to good deeds.
When they received the trophy in the year 1996 for their release their work, lead singer Cocker stated that the band would contribute their winnings to the organization the charity.
That year, musician the artist divided her prize among multiple charities, like the NSPCC and a Sickle Cell charity.
"I also contributed a £1,000 to my local community centre, to their gymnastics program, because I did gymnastics when I was younger and they needed better apparatus," she shared with a publication.
In recent years, Ezra Collective donated their funds to the community center that supported their band, as well as other local music groups.
Also the 1994 recipients M People gave their winnings to a MS organization after a acquaintance was found to have the condition.
"The victory was sufficient," stated artist the singer. "The money was the bonus but we didn't require the bonus, because we had the honor. So our victory touched somebody else's life."
Recently, the MVT revealed it had protected several small stages in the South East, by transferring them to public stewardship.
The Joiners in that area and the second in that location were purchased under the Own Our Venues initiative, which is supported by Arts Council England and supporters who acquire "ownership units" in the properties.
