The artist has given the full amount of his £25,000 award cash to the trust for venues, which works to preserve the United Kingdom's small concert spaces.
Fender was given the prize on October 16 as his third album the album was declared the best record of the past year.
The musician has chosen to donate the funds to the trust, in recognition of the crucial part small stages had in his beginning days.
"As an artist would not have achieved what I am doing today if it weren't for all the shows I did around the region, and elsewhere, when I was starting out," remarked Fender. "These locations are renowned, but they are struggling."
From early 2023 onward, over 150 of these locations have permanently closed – about 16 percent of the entire UK sector.
Recently, top acts like Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its initiatives to support the industry, by applying a minor surcharge to their admission fees, which goes to help smaller concert halls.
Sam Fender also joined in, raising more than £100,000 on his recent tour to support numerous small stages across England, Scotland, and Wales.
The money supported locations that were confronting possible closure due to difficulties arising from floods, fire incidents and family tragedies, as well as regulatory hurdles, legal disputes and noise complaints.
Some locations received monetary aid in improving infrastructure and gear that helped artists and concertgoers.
"The concept that revenue from performances in large arenas helps the local stages, where it kicks off for musicians like me, is just sensible," Fender has said.
Fender is not the first artist to donate his Mercury Prize winnings to good deeds.
Back when the band received the award in 1996 for their release Different Class, vocalist Jarvis Cocker announced that the band would donate their prize money to the charity War Child.
In 2002, musician the artist split her award among multiple good causes, including the NSPCC and a Sickle Cell organization.
"Additionally, I donated a grand to Highgate Newtown, to their classes, because I trained in gymnastics when I was growing up and they needed new equipment," the artist told outlets.
In recent years, they gave their winnings to the local youth club that developed their group, in addition to other grassroots music organisations.
Additionally 1994 winners M People contributed their prize to a charity for MS after a close contact was identified with the condition.
"The victory was sufficient," remarked artist the singer. "The prize was the extra but we didn't need the cherry, because we had the honor. So our winning affected another person's life."
Recently, the MVT announced it had rescued a couple of small stages in that region, by placing them under local control.
The first in the city and the second in Bristol were acquired under the Own Our Venues scheme, which is supported by a national body and music fans who buy "stakes" in the buildings.