The artist has handed over the full amount of his £25,000 award cash to the trust for venues, which operates to preserve the United Kingdom's small live music spots.
He was presented with the cheque on mid-October as his latest record People Watching was named the outstanding release of the past year.
The musician has chosen to give the cash to the Music Venues Trust, in acknowledgment of the crucial part grassroots venues fulfilled in his beginning days.
"I personally wouldn't be doing what I am doing today if it hadn't been for all the shows I played around the region, and elsewhere, when I was starting out," remarked Sam Fender. "These spaces are renowned, but they are in difficulty."
Beginning in 2023, more than 150 of these venues have ceased operations – roughly one-sixth of the entire UK sector.
Over the past year, major artists such as Pulp, Coldplay, Katy Perry and Sheeran have all supported the Music Venues Trust in its efforts to help venues survive, by applying a small levy to their admission fees, which benefits local stages.
Fender also took part, collecting more than £100,000 on his recent tour to support numerous local spots across Britain.
The donation helped locations that were confronting possible closure due to difficulties caused by water damage, fires and bereavements, as well as licensing issues, conflicts and sound issues.
Additional spaces were granted monetary aid in improving amenities and gear that helped artists and fans.
"The notion that revenue from concerts in major spaces helps the independent spots, where it begins for musicians like me, is just common sense," Fender has commented.
Fender is among several artists to contribute his Mercury Prize winnings to charitable organizations.
When Pulp won the award in the mid-90s for their album the album, lead singer Jarvis Cocker announced that the act would give their winnings to the organization War Child.
During 2002, artist the artist divided her bounty across a few good causes, including the children's charity and a Sickle Cell organization.
"Additionally, I contributed a £1,000 to Highgate Newtown, to their gymnastics program, because I trained in gymnastics when I was growing up and they needed updated gear," the artist explained to a publication.
In recent years, Ezra Collective gave their prize money to the community center that nurtured their band, alongside other grassroots music organisations.
Also winners that year M People contributed their winnings to a charity for MS after a close contact was found to have the condition.
"Winning was sufficient," stated artist Heather Small. "The money was the cherry on top but we didn't require the cherry, because we had the main prize. So our victory affected the lives of others."
Recently, the Music Venues Trust announced it had saved several grassroots venues in the South East, by transferring them to local control.
The Joiners in that area and the other in the city were bought under the community ownership initiative, which is backed by Arts Council England and music fans who buy "shares" in the venues.