The artist has given the entirety of his £25k honor cash to the trust for venues, which operates to preserve the United Kingdom's grassroots live music spots.
He was presented with the cheque on mid-October as his third album his work was named the top album of the past year.
The musician has opted to donate the funds to the MVT, in recognition of the crucial part grassroots venues fulfilled in his initial steps.
"I personally couldn't be pursuing my current career if it hadn't been for all the shows I did around the region, and elsewhere, when I was beginning," stated Fender. "These venues are renowned, but they are struggling."
Since the start of 2023, more than 150 of these locations have shut down – about one-sixth of the whole industry in the UK.
In the last year, top acts including Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its attempts to help venues survive, by including a small levy to their ticket costs, which goes to help independent venues.
Fender also took part, collecting more than £100,000 on his recent tour to support numerous grassroots venues across Britain.
The money assisted locations that were dealing with imminent closure due to issues caused by water damage, fires and family tragedies, as well as licensing issues, court cases and neighbor objections.
Other venues obtained funding support in improving facilities and gear that helped artists and concertgoers.
"The notion that money from concerts in big venues supports the smaller venues, where it begins for artists like me, is just logical," Sam Fender has stated.
He is not the first artist to give his Mercury Prize funds to charitable organizations.
When Pulp won the prize in the mid-90s for their record their work, frontman Cocker announced that the act would contribute their winnings to the organization War Child.
In 2002, artist Ms Dynamite shared her bounty among a few charities, like the NSPCC and a charity for Sickle Cell.
"Additionally, I contributed a £1,000 to my local community centre, to their gymnastics class, because I did gymnastics when I was growing up and they needed better apparatus," Ms Dynamite told the media.
In recent years, the band donated their prize money to the youth organization that nurtured their group, as well as other grassroots music organisations.
And the 1994 recipients M People gave their prize to a multiple sclerosis charity after a close contact was identified with the illness.
"The victory was quite enough," stated artist the singer. "The prize was the cherry on top but we could do without the cherry, because we had the honor. So our success impacted another person's life."
Recently, the MVT shared it had protected two local spots in that region, by transferring them to local control.
The first in that area and The Croft in Bristol were bought under the community ownership initiative, which is funded by Arts Council England and supporters who buy "shares" in the venues.