The artist has donated the complete sum of his £25k award winnings to the MVT, which functions to save the Britain's independent live music spots.
The star was awarded the cheque on 16 October as his new release People Watching was named the best record of the past year.
Fender has chosen to give the cash to the Music Venues Trust, in recognition of the vital role small stages played in his initial steps.
"As an artist wouldn't be doing this success if it weren't for all the shows I did around the area, and beyond, when I was starting out," stated Sam Fender. "These venues are iconic, but they are struggling."
Beginning in 2023, over 150 of these venues have shut down – approximately 16% of the whole industry in the UK.
Over the past year, major artists including Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all backed the trust in its attempts to support the industry, by including a minor surcharge to their ticket prices, which goes to help local stages.
Fender also took part, raising in excess of £100,000 on his 2024 arena tour to support thirty-eight grassroots venues across the UK.
These funds supported venues that were dealing with potential shutdown due to difficulties arising from floods, fire incidents and family tragedies, as well as permit problems, legal disputes and sound issues.
Other venues were granted monetary aid in modernizing amenities and sound and lighting systems that helped musicians and audiences.
"The notion that revenue from performances in big venues helps the independent spots, where it all starts for musicians like me, is just common sense," Sam Fender has commented.
He is far from the only musician to contribute his Mercury Prize winnings to charitable organizations.
When the band earned the prize in 1996 for their record the album, frontman Jarvis Cocker declared that the group would donate their winnings to the organization War Child.
During 2002, musician Ms Dynamite divided her bounty between multiple good causes, including the children's charity and a charity for Sickle Cell.
"Additionally, 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 new equipment," Ms Dynamite told outlets.
In recent years, they contributed their winnings to the community center that supported their group, as well as other grassroots music organisations.
And winners that year they donated their award to a charity for MS after a friend was diagnosed the illness.
"The victory was quite enough," remarked artist Heather Small. "The money was the cherry on top but we didn't need the extra, because we had the honor. So our success impacted another person's life."
Last week, the MVT shared it had saved a couple of grassroots venues in that region, by transferring them to public stewardship.
The first in that area and The Croft in Bristol were bought under the Own Our Venues scheme, which is supported by the arts council and enthusiasts who acquire "shares" in the properties.
