The star has handed over the full amount of his £25k award cash to the trust for venues, which functions to save the Britain's small concert spaces.
The star was presented with the cheque on October 16 as his latest record his work was named the top album of the past year.
The musician has decided to hand the money over to the MVT, in acknowledgment of the vital role grassroots venues played in his initial steps.
"As an artist couldn't be pursuing this success if it wasn't for all the shows I did around the area, and beyond, when I was starting out," stated Sam Fender. "These locations are legendary, but they are facing challenges."
From early 2023 onward, more than 150 of these spaces have ceased operations – about 16 percent of the whole industry in the UK.
In the last year, top acts like the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its initiatives to help venues survive, by applying a small levy to their ticket costs, which goes to help local stages.
He also joined in, raising more than £100,000 on his live tour to assist 38 local spots across the UK.
The donation assisted spaces that were facing imminent closure due to difficulties arising from flooding, blazes and personal losses, as well as regulatory hurdles, conflicts and noise complaints.
Other venues obtained financial assistance in upgrading facilities and sound and lighting systems that directly benefitted artists and fans.
"The notion that revenue from shows in major spaces backs the local stages, where it kicks off for artists like me, is just sensible," Fender has commented.
The musician is among several artists to give his Mercury Prize prize money to worthy causes.
When the band received the trophy in the mid-90s for their album their work, frontman Cocker stated that the band would contribute their prize money to the charity War Child.
During 2002, rapper and singer Ms Dynamite shared her award between multiple good causes, including the NSPCC and a Sickle Cell charity.
"I also contributed a £1,000 to the center, to their gymnastics program, because I did gymnastics when I was growing up and they needed better apparatus," the artist shared with the media.
Two years ago, they contributed their prize money to the youth organization that developed their act, as well as other grassroots music organisations.
Also winners that year M People donated their prize to a MS organization after a close contact was found to have the illness.
"Receiving the award was ample," stated vocalist Heather Small. "The cash was the cherry on top but we could do without the extra, because we had the main prize. So our winning touched the lives of others."
In the past week, the MVT revealed it had rescued two grassroots venues in that region, by placing them under local control.
One venue in that area and The Croft in the city were acquired under the Own Our Venues scheme, which is supported by a national body and supporters who purchase "ownership units" in the venues.
