The artist has handed over the complete sum of his £25k award cash to the trust for venues, which operates to save the UK's grassroots concert spaces.
Fender was given the prize on 16 October as his latest record the album was declared the outstanding release of the previous year.
Fender has opted to give the cash to the MVT, in appreciation of the crucial part grassroots venues fulfilled in his initial steps.
"As an artist would not have achieved what I am doing today if it wasn't for all the gigs I performed around the North East, and beyond, when I was just getting going," remarked Fender. "These spaces are iconic, but they are in difficulty."
From early 2023 onward, at least 150 of these locations have permanently closed – approximately 16% of the total UK scene.
Recently, well-known musicians such as Pulp, the group Coldplay, Katy Perry and 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 supports local stages.
He also participated, generating more than £100,000 on his 2024 arena tour to help thirty-eight small stages across England, Scotland, and Wales.
These funds supported locations that were facing possible closure due to challenges caused by water damage, fires and bereavements, as well as regulatory hurdles, court cases and neighbor objections.
Other venues obtained financial assistance in upgrading infrastructure and sound and lighting systems that directly benefitted musicians and concertgoers.
"The notion that money from performances in big venues helps the local stages, where it kicks off for artists like me, is just common sense," Sam Fender has commented.
The musician is among several artists to give his Mercury Prize winnings to good deeds.
In they won the prize in the year 1996 for their record Different Class, vocalist the singer announced that the act would give their prize money to the organization the charity.
That year, artist Ms Dynamite split her award among several charities, like the NSPCC and a Sickle Cell charity.
"Additionally, I donated a thousand pounds to my local community centre, to their gymnastics program, because I practiced gymnastics when I was a child and they lacked new equipment," Ms Dynamite told a publication.
Two years ago, Ezra Collective gave their funds to the youth organization that developed their band, in addition to other independent music bodies.
And the 1994 recipients M People donated their winnings to a MS organization after a acquaintance was diagnosed the disease.
"The victory was ample," said singer Small. "The cash was the extra but we didn't require the extra, because we had the honor. So our winning impacted the lives of others."
Last week, the Music Venues Trust shared it had saved several grassroots venues in south-east England, by placing them under community ownership.
The Joiners in that area and The Croft in the city were bought under the community ownership initiative, which is funded by the arts council and supporters who buy "stakes" in the properties.