The star has donated the full amount of his twenty-five thousand pound award cash to the MVT, which works to save the UK's small concert spaces.
He was given the cheque on mid-October as his latest record the album was declared the best record of the last 12 months.
Fender has decided to hand the money over to the Music Venues Trust, in acknowledgment of the vital role small stages had in his initial steps.
"I would not have achieved this success if it wasn't for all the performances I played around the area, and further afield, when I was beginning," remarked the artist. "These spaces are renowned, but they are facing challenges."
From early 2023 onward, over 150 of these venues have permanently closed – approximately 16 percent of the whole industry in the UK.
In the last year, well-known musicians including the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the trust in its initiatives to help venues survive, by applying a minor surcharge to their ticket prices, which supports smaller concert halls.
Fender also participated, collecting more than £100,000 on his 2024 arena tour to support 38 local spots across England, Scotland, and Wales.
These funds supported venues that were dealing with potential shutdown due to issues arising from water damage, fires and family tragedies, as well as licensing issues, court cases and sound issues.
Additional spaces received financial assistance in modernizing facilities and sound and lighting systems that directly benefitted musicians and fans.
"The concept that revenue from performances in major spaces helps the independent spots, where it kicks off for artists like me, is just logical," Sam Fender has stated.
Fender is not the first artist to donate his Mercury Prize funds to charitable organizations.
In the band earned the trophy in the mid-90s for their release their work, lead singer Jarvis Cocker stated that the group would donate their prize money to the organization War Child.
In 2002, musician she split her award across several organizations, including the children's charity and a Sickle Cell organization.
"I also donated a grand to Highgate Newtown, to their classes, because I trained in gymnastics when I was younger and they needed updated gear," the artist explained to outlets.
In recent years, Ezra Collective gave their prize money to the youth organization that developed their band, in addition to other local music groups.
And the 1994 recipients M People contributed their winnings to a multiple sclerosis charity after a close contact was identified with the condition.
"Winning was quite enough," stated vocalist Small. "The prize was the cherry on top but we could do without the bonus, because we had the honor. So our winning impacted somebody else's life."
Last week, the Music Venues Trust announced it had rescued two small stages in south-east England, by bringing them into community ownership.
The first in the city and the other in Bristol were bought under the Own Our Venues initiative, which is backed by Arts Council England and music fans who purchase "ownership units" in the buildings.