The star has donated the full amount of his £25k award cash to the trust for venues, which works to preserve the UK's grassroots music venues.
Fender was presented with the award on 16 October as his latest record his work was named the best record of the previous year.
Fender has opted to give the cash to the trust, in recognition of the crucial part small stages fulfilled in his beginning days.
"I personally couldn't be pursuing this success if it hadn't been for all the performances I played around the area, and further afield, when I was just getting going," said the artist. "These spaces are renowned, but they are facing challenges."
From early 2023 onward, at least 150 of these locations have shut down – about one-sixth of the total UK scene.
In the last year, major artists like the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its attempts to support the industry, by including a small levy to their ticket costs, which goes to help smaller concert halls.
Fender also joined in, generating over £100k on his recent tour to help numerous grassroots venues across Britain.
These funds assisted venues that were dealing with imminent closure due to difficulties stemming from water damage, fires and bereavements, as well as licensing issues, conflicts and neighbor objections.
Some locations received financial assistance in upgrading infrastructure and technical equipment that positively impacted performers and audiences.
"The notion that revenue from concerts in large arenas helps the local stages, where it all starts for musicians like me, is just common sense," Sam Fender has stated.
The musician is among several artists to give his Mercury Prize funds to good deeds.
In they won the award in 1996 for their release the album, vocalist Cocker announced that the act would give their prize money to the non-profit the charity.
That year, musician she split her prize across several organizations, such as the children's charity and a Sickle Cell organization.
"And I contributed a thousand pounds to my local community centre, to their gymnastics class, because I practiced gymnastics when I was growing up and they required new equipment," Ms Dynamite told outlets.
Previously, they contributed their prize money to the local youth club that developed their band, in addition to other independent music bodies.
And winners that year the group gave their winnings to a charity for MS after a acquaintance was identified with the condition.
"Winning was quite enough," said singer Heather Small. "The money was the cherry on top but we didn't need the cherry, because we had the honor. So our victory touched another person's life."
In the past week, the trust shared it had rescued two local spots in the South East, by placing them under community ownership.
One venue in that area and the second in Bristol were bought under the public acquisition initiative, which is supported by Arts Council England and enthusiasts who acquire "shares" in the properties.
