The star has handed over the full amount of his £25,000 honor winnings to the MVT, which functions to protect the UK's small music venues.
The star was awarded the prize on mid-October as his new release People Watching was chosen as the best record of the past year.
He has chosen to give the cash to the trust, in acknowledgment of the vital role small stages fulfilled in his initial steps.
"I would not have achieved this success if it weren't for all the shows I did around the region, and elsewhere, when I was just getting going," remarked Fender. "These venues are legendary, but they are in difficulty."
Beginning in 2023, at least 150 of these spaces have ceased operations – about 16 percent of the whole industry in the UK.
Over the past year, top acts like Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its efforts to support the industry, by adding a modest fee to their ticket costs, which supports local stages.
Fender also took part, collecting over £100k on his recent tour to support thirty-eight grassroots venues across Britain.
The money helped venues that were confronting imminent closure due to difficulties caused by floods, blazes and family tragedies, as well as permit problems, conflicts and noise complaints.
Additional spaces received monetary aid in improving infrastructure and technical equipment that directly benefitted artists and fans.
"The concept that revenue from performances in big venues supports the local stages, where it begins for artists like me, is just sensible," Sam Fender has commented.
The musician is far from the only musician to donate his Mercury Prize winnings to charitable organizations.
When Pulp won the award in the mid-90s for their release their work, frontman the singer announced that the group would donate their prize money to the organization War Child.
During 2002, rapper and singer she split her bounty among several charities, such as the NSPCC and a Sickle Cell charity.
"And I donated 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," the artist shared with a publication.
Previously, they donated their funds to the local youth club that nurtured their band, in addition to other local music groups.
Additionally winners that year the group gave their award to a charity for MS after a friend was identified with the condition.
"Winning was sufficient," remarked singer the singer. "The cash was the bonus but we didn't require the extra, because we had the cake. So our winning affected another person's life."
In the past week, the MVT announced it had saved a couple of grassroots venues in the South East, by placing them under local control.
One venue in Southampton and the other in that location were purchased under the public acquisition scheme, which is funded by the arts council and enthusiasts who buy "stakes" in the buildings.
