The star has given the complete sum of his £25k honor cash to the trust for venues, which works to save the UK's independent live music spots.
Fender was awarded the award on mid-October as his new release the album was named the best record of the last 12 months.
Fender has decided to hand the money over to the trust, in acknowledgment of the vital role local spots fulfilled in his initial steps.
"As an artist would not have achieved this success if it hadn't been for all the shows I did around the region, and beyond, when I was starting out," remarked the artist. "These venues are legendary, but they are in difficulty."
Since the start of 2023, over 150 of these spaces have shut down – roughly one-sixth of the whole industry in the UK.
Over the past year, major artists such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its initiatives to help venues survive, by applying a small levy to their ticket prices, which goes to help smaller concert halls.
Sam Fender also participated, collecting over £100k on his 2024 arena tour to support thirty-eight small stages across England, Scotland, and Wales.
The donation helped spaces that were confronting imminent closure due to challenges arising from floods, blazes and bereavements, as well as licensing issues, legal disputes and sound issues.
Some locations obtained funding support in modernizing amenities and technical equipment that positively impacted artists and fans.
"The concept that money from concerts in large arenas supports the local stages, where it kicks off for artists like me, is just sensible," the star has commented.
Fender is far from the only musician to donate his Mercury Prize prize money to good deeds.
Back when Pulp earned the prize in 1996 for their album the album, vocalist the singer declared that the band would contribute their winnings to the non-profit the charity.
That year, musician Ms Dynamite split her prize among several organizations, including the children's charity and a Sickle Cell charity.
"And I gave a thousand pounds to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was growing up and they required better apparatus," the artist explained to the media.
Two years ago, they donated their funds to the community center that nurtured their group, in addition to other grassroots music organisations.
Additionally 1994 winners M People gave their award to a multiple sclerosis charity after a close contact was identified with the illness.
"The victory was sufficient," remarked singer the singer. "The money was the extra but we didn't require the bonus, because we had the main prize. So our winning touched another person's life."
Recently, the trust announced it had protected several grassroots venues in the South East, by bringing them into community ownership.
The first in Southampton and the second in the city were bought under the Own Our Venues initiative, which is supported by the arts council and enthusiasts who purchase "ownership units" in the properties.