The artist has given the complete sum of his £25,000 award cash to the MVT, which works to protect the UK's grassroots live music spots.
He was awarded the prize on mid-October as his latest record People Watching was declared the top album of the last 12 months.
Fender has opted to donate the funds to the trust, in acknowledgment of the essential function local spots played in his beginning days.
"I couldn't be pursuing my current career if it hadn't been for all the performances I played around the North East, and further afield, when I was just getting going," remarked Fender. "These venues are legendary, but they are struggling."
From early 2023 onward, more than 150 of these locations have ceased operations – approximately 16 percent of the total UK scene.
Recently, top acts such as the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all supported the MVT in its attempts to keep the scene afloat, by including a modest fee to their ticket prices, which benefits independent venues.
Fender also participated, generating in excess of £100,000 on his recent tour to assist 38 small stages across the UK.
The money assisted venues that were facing potential shutdown due to challenges arising from floods, blazes and personal losses, as well as licensing issues, conflicts and noise complaints.
Additional spaces were granted monetary aid in upgrading facilities and technical equipment that directly benefitted performers and fans.
"The concept that revenue from shows in big venues supports the local stages, where it all starts for artists like me, is just logical," Sam Fender has stated.
The musician is among several artists to donate his Mercury Prize prize money to good deeds.
Back when the band earned the prize in the mid-90s for their album Different Class, frontman Jarvis Cocker declared that the group would give their prize money to the charity the charity.
During 2002, rapper and singer she split her bounty between several good causes, such as the NSPCC and a charity for Sickle Cell.
"I also gave a thousand pounds to my local community centre, to their gymnastics class, because I trained in gymnastics when I was a child and they required better apparatus," she shared with outlets.
Two years ago, they contributed their funds to the youth organization that nurtured their act, in addition to other grassroots music organisations.
Also winners that year the group gave their award to a MS organization after a acquaintance was diagnosed the condition.
"Receiving the award was ample," remarked artist the singer. "The money was the bonus but we didn't need the bonus, because we had the cake. So our victory affected the lives of others."
In the past week, the Music Venues Trust revealed it had rescued two grassroots venues in that region, by placing them under public stewardship.
The Joiners in the city and The Croft in Bristol were purchased under the Own Our Venues program, which is funded by a national body and enthusiasts who acquire "stakes" in the buildings.