The artist has given the entirety of his twenty-five thousand pound honor cash to the trust for venues, which functions to protect the Britain's small live music spots.
He was presented with the prize on mid-October as his latest record his work was chosen as the top album of the previous year.
He has decided to give the cash to the MVT, in recognition of the essential function grassroots venues fulfilled in his initial steps.
"I personally couldn't be pursuing my current career if it wasn't for all the shows I performed around the area, and further afield, when I was just getting going," remarked Sam Fender. "These locations are legendary, but they are struggling."
Since the start of 2023, more than 150 of these venues have ceased operations – about one-sixth of the whole industry in the UK.
Over the past year, major artists such as the band Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its initiatives to keep the scene afloat, by adding a small levy to their ticket prices, which benefits local stages.
He also joined in, raising over £100k on his live tour to help numerous grassroots venues across Britain.
These funds helped venues that were dealing with imminent closure due to difficulties arising from water damage, fire incidents and bereavements, as well as regulatory hurdles, legal disputes and neighbor objections.
Some locations were granted monetary aid in modernizing amenities and gear that positively impacted artists and audiences.
"The concept that funds from performances in large arenas helps the local stages, where it kicks off for musicians like me, is just common sense," Sam Fender has stated.
He is among several artists to give his Mercury Prize funds to worthy causes.
Back when they won the trophy in the mid-90s for their release Different Class, lead singer the singer declared that the act would contribute their cash to the non-profit War Child.
That year, rapper and singer the artist divided her bounty between a few good causes, including the children's charity and a Sickle Cell charity.
"I also gave a grand to the center, to their gymnastics class, because I practiced gymnastics when I was a child and they needed updated gear," Ms Dynamite told the media.
In recent years, the band gave their winnings to the youth organization that developed their band, alongside other grassroots music organisations.
And 1994 winners M People contributed their prize to a multiple sclerosis charity after a close contact was identified with the illness.
"Receiving the award was quite enough," remarked singer the singer. "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."
In the past week, the trust announced it had protected two grassroots venues in the South East, by placing them under local control.
The Joiners in that area and the second in that location were acquired under the Own Our Venues initiative, which is funded by a national body and enthusiasts who acquire "stakes" in the properties.