The star has donated the complete sum of his £25k honor winnings to the MVT, which operates to save the UK's small concert spaces.
He was presented with the cheque on 16 October as his new release his work was named the outstanding release of the previous year.
The musician has chosen to give the cash to the trust, in appreciation of the vital role grassroots venues played in his early career.
"I wouldn't be doing this success if it hadn't been for all the gigs I performed around the North East, and beyond, when I was starting out," stated Fender. "These spaces are renowned, but they are struggling."
Since the start of 2023, over 150 of these venues have shut down – roughly 16% of the whole industry in the UK.
In the last year, top acts such as the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all supported the MVT in its efforts to keep the scene afloat, by including a modest fee to their ticket prices, which benefits local stages.
Sam Fender also took part, collecting over £100k on his 2024 arena tour to assist numerous grassroots venues across the UK.
The money supported venues that were facing possible closure due to difficulties arising from flooding, fires and personal losses, as well as regulatory hurdles, conflicts and neighbor objections.
Other venues received funding support in upgrading facilities and gear that directly benefitted musicians and fans.
"The idea that money from performances in major spaces backs the smaller venues, where it kicks off for artists like me, is just logical," Sam Fender has stated.
He is far from the only musician to contribute his Mercury Prize winnings to good deeds.
Back when Pulp received the prize in the mid-90s for their album Different Class, lead singer the singer announced that the group would give their prize money to the charity War Child.
That year, rapper and singer the artist split her award among multiple good causes, like the NSPCC and a Sickle Cell charity.
"Additionally, I gave a £1,000 to Highgate Newtown, to their gymnastics class, because I practiced gymnastics when I was younger and they lacked new equipment," the artist told the media.
In recent years, Ezra Collective donated their funds to the youth organization that developed their act, in addition to other independent music bodies.
Also the 1994 recipients the group gave their prize to a MS organization after a close contact was diagnosed the condition.
"Winning was quite enough," said artist the singer. "The cash was the extra but we didn't require the cherry, because we had the honor. So our victory touched another person's life."
Last week, the trust revealed it had saved several grassroots venues in the South East, by bringing them into public stewardship.
The Joiners in Southampton and The Croft in Bristol were bought under the community ownership initiative, which is funded by Arts Council England and supporters who acquire "shares" in the buildings.