The artist has given the entirety of his £25,000 award cash to the MVT, which functions to save the United Kingdom's small concert spaces.
Fender was given the cheque on October 16 as his new release his work was chosen as the top album of the past year.
The musician has opted to hand the money over to the Music Venues Trust, in recognition of the essential function grassroots venues played in his early career.
"As an artist wouldn't be doing this success if it wasn't for all the gigs I performed around the North East, and further afield, when I was starting out," remarked the artist. "These venues are renowned, but they are facing challenges."
From early 2023 onward, more than 150 of these locations have permanently closed – approximately 16% of the total UK scene.
Recently, major artists such as Pulp, the group Coldplay, Katy Perry and Sheeran have all backed the MVT in its efforts to keep the scene afloat, by applying a modest fee to their ticket prices, which benefits independent venues.
Fender also joined in, generating more than £100,000 on his live tour to assist thirty-eight grassroots venues across England, Scotland, and Wales.
The donation supported locations that were confronting possible closure due to difficulties stemming from water damage, blazes and family tragedies, as well as licensing issues, conflicts and sound issues.
Some locations were granted monetary aid in upgrading facilities and technical equipment that directly benefitted artists and audiences.
"The notion that funds from shows in big venues helps the smaller venues, where it begins for artists like me, is just sensible," Sam Fender has said.
The musician is among several artists to give his Mercury Prize prize money to worthy causes.
When they earned the award in the mid-90s for their album the album, vocalist the singer announced that the group would contribute their winnings to the organization War Child.
In 2002, rapper and singer the artist split her prize between several organizations, such as the NSPCC and a charity for Sickle Cell.
"And I contributed a grand to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was growing up and they required updated gear," Ms Dynamite told the media.
In recent years, the band donated their funds to the youth organization that supported their group, in addition to other grassroots music organisations.
Also the 1994 recipients the group gave their winnings to a charity for MS after a close contact was identified with the illness.
"Receiving the award was quite enough," said artist Heather Small. "The money was the cherry on top but we could do without the cherry, because we had the main prize. So our success touched the lives of others."
Recently, the Music Venues Trust shared it had saved two grassroots venues in south-east England, by transferring them to community ownership.
One venue in that area and The Croft in the city were bought under the public acquisition initiative, which is supported by a national body and music fans who buy "ownership units" in the venues.