The artist has donated the entirety of his £25k honor winnings to the MVT, which works to save the Britain's small live music spots.
Fender was awarded the prize on October 16 as his third album People Watching was named the top album of the last 12 months.
He has decided to donate the funds to the Music Venues Trust, in appreciation of the crucial part local spots fulfilled in his beginning days.
"I wouldn't be doing this success if it hadn't been for all the shows I performed around the North East, and further afield, when I was starting out," said Fender. "These locations are legendary, but they are struggling."
Beginning in 2023, over 150 of these spaces have permanently closed – about one-sixth of the whole industry in the UK.
Over the past year, top acts including Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its initiatives to help venues survive, by including a small levy to their ticket costs, which goes to help independent venues.
Sam Fender also took part, collecting more than £100,000 on his live tour to support 38 local spots across England, Scotland, and Wales.
These funds assisted spaces that were confronting possible closure due to difficulties caused by floods, fires and family tragedies, as well as permit problems, legal disputes and neighbor objections.
Some locations received funding support in modernizing infrastructure and technical equipment that helped musicians and fans.
"The idea that revenue from performances in big venues backs the independent spots, where it all starts for musicians like me, is just sensible," the star has stated.
He is far from the only musician to contribute his Mercury Prize prize money to good deeds.
In the band received the prize in the mid-90s for their record their work, frontman Jarvis Cocker declared that the group would contribute their cash to the charity War Child.
That year, musician she split her prize between multiple charities, like the NSPCC and a Sickle Cell organization.
"I also donated a £1,000 to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was younger and they lacked better apparatus," the artist explained to outlets.
Previously, Ezra Collective donated their prize money to the community center that nurtured their group, as well as other local music groups.
Also winners that year the group contributed their award to a charity for MS after a close contact was diagnosed the condition.
"Winning was quite enough," remarked singer Heather Small. "The money was the extra but we didn't require the cherry, because we had the cake. So our victory touched the lives of others."
In the past week, the MVT revealed it had saved several local spots in the South East, by transferring them to public stewardship.
The Joiners in that area and the other in that location were bought under the community ownership scheme, which is backed by a national body and music fans who acquire "stakes" in the properties.