The star has handed over the full amount of his £25k award prize money to the trust for venues, which functions to protect the UK's small music venues.
Fender was given the cheque on 16 October as his new release the album was named the best record of the past year.
He has opted to give the cash to the trust, in acknowledgment of the crucial part local spots fulfilled in his early career.
"I wouldn't be doing this success if it weren't for all the shows I played around the region, and further afield, when I was just getting going," stated the artist. "These spaces are legendary, but they are in difficulty."
Beginning in 2023, over 150 of these locations have ceased operations – approximately 16% of the entire UK sector.
In the last year, major artists including Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its efforts to help venues survive, by including a modest fee to their ticket prices, which goes to help independent venues.
Sam Fender also joined in, raising more than £100,000 on his 2024 arena tour to support 38 small stages across Britain.
The donation supported spaces that were confronting potential shutdown due to challenges arising from floods, fires and bereavements, as well as permit problems, legal disputes and neighbor objections.
Some locations were granted funding support in modernizing infrastructure and technical equipment that directly benefitted musicians and fans.
"The idea that funds from performances in big venues helps the smaller venues, where it kicks off for artists like me, is just sensible," the star has commented.
Fender is among several artists to give his Mercury Prize funds to worthy causes.
In they earned the prize in 1996 for their record their work, frontman Cocker announced that the group would donate their prize money to the organization the charity.
That year, musician Ms Dynamite divided her award across a few organizations, such as the NSPCC and a charity for Sickle Cell.
"And I gave a thousand pounds to my local community centre, to their classes, because I practiced gymnastics when I was younger and they needed updated gear," the artist explained to the media.
In recent years, the band contributed their winnings to the youth organization that supported their act, in addition to other local music groups.
Additionally winners that year they gave their award to a charity for MS after a friend was found to have the illness.
"The victory was quite enough," said singer Small. "The prize was the bonus but we didn't require the cherry, because we had the main prize. So our victory affected the lives of others."
In the past week, the Music Venues Trust announced it had protected a couple of small stages in the South East, by placing them under public stewardship.
The Joiners in that area and The Croft in the city were purchased under the public acquisition program, which is backed by a national body and supporters who buy "shares" in the buildings.