The star has given the complete sum of his £25k award winnings to the trust for venues, which functions to preserve the UK's independent music venues.
The star was awarded the prize on 16 October as his new release People Watching was chosen as the top album of the previous year.
The musician has opted to hand the money over to the trust, in appreciation of the vital role small stages played in his initial steps.
"I personally wouldn't be doing my current career if it hadn't been for all the performances I did around the North East, and further afield, when I was beginning," stated Sam Fender. "These spaces are renowned, but they are struggling."
From early 2023 onward, more than 150 of these venues have shut down – about one-sixth of the entire UK sector.
Recently, top acts like the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the trust in its initiatives to help venues survive, by including a small levy to their ticket prices, which supports local stages.
He also participated, generating in excess of £100,000 on his live tour to assist 38 grassroots venues across the UK.
The money helped locations that were confronting possible closure due to challenges stemming from flooding, blazes and family tragedies, as well as licensing issues, court cases and sound issues.
Other venues were granted monetary aid in improving amenities and technical equipment that positively impacted artists and audiences.
"The concept that money from concerts in large arenas supports the independent spots, where it all starts for performers like me, is just sensible," Sam Fender has commented.
Fender is not the first artist to donate his Mercury Prize winnings to worthy causes.
Back when the band received the award in the year 1996 for their record their work, vocalist Jarvis Cocker stated that the group would give their prize money to the non-profit War Child.
During 2002, rapper and singer Ms Dynamite divided her award among a few organizations, including the children's charity and a Sickle Cell charity.
"And I contributed a grand to Highgate Newtown, to their gymnastics program, because I trained in gymnastics when I was a child and they lacked better apparatus," she shared with outlets.
In recent years, the band contributed their prize money to the youth organization that developed their group, in addition to other independent music bodies.
And winners that year M People contributed their winnings to a charity for MS after a acquaintance was diagnosed the condition.
"The victory was quite enough," said vocalist the singer. "The money was the bonus but we didn't need the bonus, because we had the main prize. So our success affected the lives of others."
Recently, the MVT announced it had protected two local spots in south-east England, by transferring them to community ownership.
One venue in Southampton and The Croft in the city were acquired under the community ownership program, which is supported by Arts Council England and enthusiasts who buy "stakes" in the properties.
