The artist has handed over the full amount of his £25k honor winnings to the trust for venues, which works to preserve the United Kingdom's independent live music spots.
Fender was given the prize on mid-October as his third album the album was declared the top album of the previous year.
He has decided to give the cash to the Music Venues Trust, in appreciation of the vital role grassroots venues had in his beginning days.
"I personally couldn't be pursuing this success if it wasn't for all the performances I played around the area, and beyond, when I was starting out," said the artist. "These locations are iconic, but they are facing challenges."
From early 2023 onward, at least 150 of these venues have ceased operations – about 16% of the whole industry in the UK.
In the last year, well-known musicians like the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its initiatives to help venues survive, by including a minor surcharge to their ticket prices, which benefits smaller concert halls.
Sam Fender also joined in, raising more than £100,000 on his 2024 arena tour to assist 38 grassroots venues across Britain.
The donation helped venues that were facing imminent closure due to challenges caused by water damage, fires and personal losses, as well as regulatory hurdles, conflicts and noise complaints.
Other venues were granted monetary aid in upgrading facilities and sound and lighting systems that directly benefitted artists and fans.
"The idea that funds from shows in big venues helps the local stages, where it begins for performers like me, is just sensible," the star has said.
Fender is not the first artist to donate his Mercury Prize winnings to good deeds.
When Pulp won the award in the year 1996 for their record Different Class, lead singer Jarvis Cocker declared that the act would donate their prize money to the non-profit the charity.
In 2002, artist Ms Dynamite shared her award among a few charities, including the NSPCC and a Sickle Cell charity.
"I also donated a grand to the center, to their gymnastics program, because I trained in gymnastics when I was younger and they required updated gear," Ms Dynamite shared with a publication.
In recent years, the band contributed their winnings to the local youth club that developed their band, as well as other grassroots music organisations.
Additionally 1994 winners the group donated their winnings to a MS organization after a close contact was identified with the disease.
"Winning was sufficient," remarked singer the singer. "The prize was the bonus but we didn't need the extra, because we had the honor. So our victory impacted the lives of others."
Last week, the MVT shared it had protected two grassroots venues in the South East, by transferring them to community ownership.
The first in Southampton and the other in the city were acquired under the public acquisition scheme, which is funded by the arts council and music fans who acquire "ownership units" in the venues.
