The star has handed over the full amount of his £25,000 award prize money to the MVT, which functions to save the Britain's small live music spots.
The star was presented with the prize on 16 October as his new release the album was chosen as the outstanding release of the last 12 months.
The musician has opted to donate the funds to the trust, in acknowledgment of the vital role grassroots venues fulfilled in his beginning days.
"I wouldn't be doing this success if it wasn't for all the shows I performed around the North East, and beyond, when I was just getting going," remarked Sam Fender. "These spaces are iconic, but they are in difficulty."
Since the start of 2023, over 150 of these locations have ceased operations – roughly one-sixth of the entire UK sector.
Recently, major artists such as the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its initiatives to help venues survive, by including a modest fee to their ticket costs, which benefits local stages.
He also took part, collecting more than £100,000 on his 2024 arena tour to support thirty-eight small stages across the UK.
The donation assisted spaces that were facing potential shutdown due to challenges arising from water damage, fire incidents and family tragedies, as well as licensing issues, conflicts and noise complaints.
Some locations were granted monetary aid in modernizing infrastructure and technical equipment that directly benefitted artists and concertgoers.
"The idea that revenue from performances in large arenas backs the independent spots, where it all starts for performers like me, is just sensible," Sam Fender has stated.
Fender is among several artists to give his Mercury Prize funds to good deeds.
Back when the band won the award in the year 1996 for their release Different Class, lead singer the singer declared that the act would contribute their prize money to the charity War Child.
That year, musician Ms Dynamite split her bounty across multiple charities, including the NSPCC and a charity for Sickle Cell.
"And I gave a grand to Highgate Newtown, to their classes, because I practiced gymnastics when I was growing up and they lacked updated gear," the artist told outlets.
Two years ago, they donated their winnings to the community center that developed their act, as well as other grassroots music organisations.
And 1994 winners M People donated their winnings to a charity for MS after a acquaintance was diagnosed the condition.
"The victory was ample," said vocalist Small. "The cash was the extra but we didn't need the bonus, because we had the main prize. So our winning affected somebody else's life."
Recently, the MVT revealed it had rescued several grassroots venues in the South East, by bringing them into local control.
The first in the city and The Croft in Bristol were purchased under the public acquisition initiative, which is funded by Arts Council England and music fans who acquire "ownership units" in the properties.