The artist has donated the full amount of his £25,000 award cash to the trust for venues, which works to save the UK's independent music venues.
Fender was given the award on 16 October as his new release the album was named the top album of the past year.
Fender has chosen to give the cash to the MVT, in acknowledgment of the vital role local spots fulfilled in his initial steps.
"I personally couldn't be pursuing what I am doing today if it weren't for all the shows I did around the region, and beyond, when I was beginning," said the artist. "These spaces are legendary, but they are in difficulty."
From early 2023 onward, more than 150 of these venues have ceased operations – approximately one-sixth of the whole industry in the UK.
In the last year, well-known musicians such as Pulp, the group Coldplay, Katy Perry and Sheeran have all backed the trust in its attempts to support the industry, by adding a modest fee to their ticket costs, which supports local stages.
Sam Fender also joined in, raising more than £100,000 on his live tour to help 38 small stages across England, Scotland, and Wales.
The money helped spaces that were confronting possible closure due to issues stemming from water damage, fire incidents and bereavements, as well as permit problems, conflicts and noise complaints.
Additional spaces were granted funding support in improving amenities and sound and lighting systems that helped performers and fans.
"The concept that money from concerts in major spaces helps the smaller venues, where it all starts for performers like me, is just logical," Fender has stated.
The musician is far from the only musician to contribute his Mercury Prize winnings to charitable organizations.
In the band won the prize in the year 1996 for their record the album, lead singer Cocker stated that the group would contribute their cash to the non-profit the charity.
In 2002, musician the artist shared her award between multiple good causes, such as the children's charity and a Sickle Cell organization.
"Additionally, I contributed a grand to my local community centre, to their classes, because I trained in gymnastics when I was growing up and they required better apparatus," Ms Dynamite told outlets.
Two years ago, they gave their prize money to the local youth club that developed their act, alongside other local music groups.
Also 1994 winners the group contributed their winnings to a multiple sclerosis charity after a close contact was diagnosed the disease.
"The victory was quite enough," said singer Heather Small. "The money was the cherry on top but we didn't need the bonus, because we had the cake. So our winning touched the lives of others."
In the past week, the Music Venues Trust announced it had protected two small stages in the South East, by placing them under public stewardship.
One venue in Southampton and the other in Bristol were purchased under the community ownership scheme, which is funded by a national body and supporters who buy "shares" in the properties.
