The artist has handed over the complete sum of his £25,000 award prize money to the trust for venues, which works to save the Britain's small live music spots.
He was given the prize on mid-October as his third album his work was named the top album of the past year.
The musician has decided to donate the funds to the trust, in recognition of the crucial part grassroots venues played in his early career.
"I couldn't be pursuing what I am doing today if it weren't for all the gigs I played around the region, and elsewhere, when I was starting out," remarked Fender. "These spaces are iconic, but they are in difficulty."
Since the start of 2023, more than 150 of these spaces have ceased operations – roughly one-sixth of the total UK scene.
In the last year, major artists including the band Pulp, Coldplay, Katy Perry and Sheeran have all aided the trust in its attempts to help venues survive, by applying a small levy to their ticket prices, which supports local stages.
He also participated, collecting over £100k on his live tour to help thirty-eight local spots across Britain.
The money assisted venues that were confronting potential shutdown due to challenges stemming from water damage, blazes and family tragedies, as well as regulatory hurdles, court cases and noise complaints.
Other venues obtained financial assistance in upgrading infrastructure and gear that directly benefitted artists and concertgoers.
"The idea that money from shows in large arenas backs the smaller venues, where it begins for musicians like me, is just common sense," Sam Fender has stated.
The musician is far from the only musician to give his Mercury Prize funds to good deeds.
When the band received the prize in 1996 for their release their work, vocalist the singer announced that the band would give their prize money to the organization War Child.
In 2002, musician the artist divided her prize between several good causes, including the NSPCC and a Sickle Cell organization.
"I also gave a £1,000 to Highgate Newtown, to their gymnastics class, because I trained in gymnastics when I was a child and they required better apparatus," the artist told a publication.
In recent years, Ezra Collective gave their winnings to the local youth club that developed their group, in addition to other grassroots music organisations.
Also the 1994 recipients they donated their prize to a MS organization after a friend was identified with the condition.
"Receiving the award was ample," remarked singer Heather Small. "The money was the extra but we could do without the cherry, because we had the main prize. So our winning touched another person's life."
Last week, the MVT revealed it had saved a couple of grassroots venues in south-east England, by transferring them to community ownership.
The Joiners in that area and the second in Bristol were purchased under the community ownership initiative, which is funded by Arts Council England and supporters who purchase "ownership units" in the properties.
