The star has handed over the entirety of his £25k honor prize money to the MVT, which operates to save the UK's independent concert spaces.
The star was awarded the cheque on October 16 as his new release his work was named the outstanding release of the previous year.
The musician has opted to donate the funds to the trust, in acknowledgment of the vital role grassroots venues had in his initial steps.
"As an artist would not have achieved this success if it hadn't been for all the shows I performed around the area, and elsewhere, when I was beginning," remarked Sam Fender. "These locations are iconic, but they are struggling."
From early 2023 onward, over 150 of these venues have ceased operations – roughly 16% of the total UK scene.
Over the past year, major artists such as the band Pulp, Coldplay, Katy Perry and Sheeran have all supported the Music Venues Trust in its efforts to help venues survive, by including a minor surcharge to their ticket costs, which goes to help independent venues.
Sam Fender also participated, collecting in excess of £100,000 on his live tour to assist 38 local spots across England, Scotland, and Wales.
The donation helped spaces that were confronting possible closure due to issues caused by flooding, fires and bereavements, as well as regulatory hurdles, court cases and sound issues.
Some locations were granted financial assistance in modernizing facilities and gear that helped artists and fans.
"The concept that money from performances in large arenas helps the local stages, where it kicks off for artists like me, is just logical," the star has said.
Fender is not the first artist to donate his Mercury Prize funds to worthy causes.
When Pulp won the trophy in the mid-90s for their record Different Class, vocalist Jarvis Cocker declared that the band would donate their prize money to the non-profit War Child.
That year, artist she split her bounty among several good causes, including the children's charity and a Sickle Cell organization.
"And I gave a grand to the center, to their gymnastics class, because I trained in gymnastics when I was younger and they needed updated gear," the artist explained to the media.
Previously, they gave their winnings to the community center that developed their act, alongside other grassroots music organisations.
Additionally the 1994 recipients the group donated their winnings to a multiple sclerosis charity after a acquaintance was identified with the illness.
"The victory was ample," stated artist Heather Small. "The money was the extra but we didn't require the extra, because we had the cake. So our success affected another person's life."
Recently, the MVT announced it had saved a couple of grassroots venues in south-east England, by transferring them to community ownership.
The Joiners in the city and the second in the city were acquired under the public acquisition program, which is supported by Arts Council England and supporters who purchase "shares" in the buildings.