The artist has donated the entirety of his £25k award cash to the trust for venues, which operates to preserve the UK's small live music spots.
The star was given the prize on October 16 as his latest record People Watching was declared the outstanding release of the previous year.
He has opted to hand the money over to the MVT, in acknowledgment of the vital role small stages had in his early career.
"I wouldn't be doing this success if it weren't for all the shows I played around the area, and further afield, when I was beginning," stated Fender. "These venues are legendary, but they are in difficulty."
From early 2023 onward, more than 150 of these locations have ceased operations – about 16% of the whole industry in the UK.
Over the past year, well-known musicians such as the band Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its attempts to support the industry, by including a minor surcharge to their ticket prices, which supports smaller concert halls.
Fender also took part, collecting more than £100,000 on his recent tour to assist 38 grassroots venues across the UK.
These funds helped venues that were confronting imminent closure due to difficulties arising from floods, fire incidents and personal losses, as well as licensing issues, conflicts and noise complaints.
Other venues obtained financial assistance in improving infrastructure and sound and lighting systems that positively impacted performers and audiences.
"The notion that money from performances in major spaces helps the smaller venues, where it kicks off for performers like me, is just sensible," Sam Fender has said.
He is among several artists to contribute his Mercury Prize prize money to worthy causes.
Back when they won the prize in 1996 for their album the album, frontman Cocker announced that the group would contribute their cash to the organization War Child.
In 2002, rapper and singer the artist divided her bounty among several good causes, like the NSPCC and a charity for Sickle Cell.
"I also contributed a £1,000 to Highgate Newtown, to their classes, because I did gymnastics when I was younger and they needed better apparatus," the artist explained to outlets.
Previously, the band gave their funds to the community center that developed their band, in addition to other local music groups.
Also 1994 winners M People donated their award to a multiple sclerosis charity after a close contact was identified with the condition.
"The victory was ample," said artist Heather Small. "The money was the cherry on top but we didn't need the bonus, because we had the main prize. So our success affected another person's life."
Last week, the MVT announced it had saved a couple of small stages in that region, by bringing them into local control.
The first in that area and the other in the city were bought under the Own Our Venues program, which is backed by Arts Council England and supporters who buy "ownership units" in the venues.
