The star has handed over the full amount of his £25k honor winnings to the trust for venues, which works to preserve the UK's independent live music spots.
Fender was presented with the award on 16 October as his third album the album was chosen as the outstanding release of the past year.
Fender has decided to donate the funds to the trust, in acknowledgment of the essential function grassroots venues played in his initial steps.
"I would not have achieved my current career if it weren't for all the gigs I performed around the area, and beyond, when I was just getting going," remarked Fender. "These venues are iconic, but they are in difficulty."
Since the start of 2023, more than 150 of these spaces have shut down – about 16 percent of the total UK scene.
Recently, well-known musicians like Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its attempts to keep the scene afloat, by applying a modest fee to their ticket prices, which goes to help independent venues.
Sam Fender also participated, generating in excess of £100,000 on his 2024 arena tour to assist thirty-eight local spots across England, Scotland, and Wales.
The money helped venues that were dealing with potential shutdown due to challenges caused by water damage, blazes and personal losses, as well as regulatory hurdles, court cases and noise complaints.
Other venues received monetary aid in modernizing infrastructure and sound and lighting systems that helped performers and audiences.
"The notion that money from concerts in major spaces helps the smaller venues, where it all starts for musicians like me, is just logical," Fender has stated.
The musician is far from the only musician to donate his Mercury Prize funds to good deeds.
When the band earned the trophy in the year 1996 for their album Different Class, frontman Cocker stated that the band would donate their prize money to the organization War Child.
That year, rapper and singer the artist split her award across a few organizations, like the children's charity and a Sickle Cell charity.
"And I gave a £1,000 to my local community centre, to their gymnastics class, because I practiced gymnastics when I was younger and they required updated gear," she told a publication.
Two years ago, they gave their prize money to the community center that developed their group, as well as other local music groups.
Additionally winners that year M People contributed their winnings to a multiple sclerosis charity after a acquaintance was found to have the disease.
"Winning was quite enough," remarked artist Small. "The money was the extra but we didn't require the extra, because we had the honor. So our victory impacted the lives of others."
Last week, the Music Venues Trust shared it had protected two small stages in the South East, by transferring them to local control.
One venue in the city and The Croft in the city were acquired under the Own Our Venues program, which is funded by Arts Council England and supporters who acquire "stakes" in the buildings.