The artist has handed over the entirety of his £25k honor cash to the trust for venues, which operates to protect the United Kingdom's small live music spots.
Fender was given the award on mid-October as his third album his work was declared the top album of the previous year.
Fender has opted to hand the money over to the Music Venues Trust, in recognition of the vital role small stages fulfilled in his beginning days.
"As an artist wouldn't be doing my current career if it wasn't for all the shows I performed around the North East, and beyond, when I was starting out," said Sam Fender. "These spaces are legendary, but they are in difficulty."
Beginning in 2023, over 150 of these venues have permanently closed – roughly 16% of the total UK scene.
Over the past year, well-known musicians such as Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its attempts to support the industry, by applying a modest fee to their ticket prices, which benefits local stages.
Sam Fender also took part, raising over £100k on his 2024 arena tour to assist numerous local spots across Britain.
These funds helped locations that were dealing with imminent closure due to issues caused by flooding, blazes and bereavements, as well as licensing issues, court cases and neighbor objections.
Other venues received financial assistance in modernizing amenities and sound and lighting systems that positively impacted performers and audiences.
"The concept that revenue from concerts in major spaces supports the smaller venues, where it all starts for performers like me, is just common sense," Fender has stated.
Fender is among several artists to donate his Mercury Prize prize money to good deeds.
When the band earned the prize in 1996 for their release the album, vocalist Jarvis Cocker declared that the group would donate their prize money to the non-profit War Child.
In 2002, musician Ms Dynamite shared her bounty between several good causes, including the NSPCC and a Sickle Cell organization.
"And I donated a £1,000 to Highgate Newtown, to their gymnastics class, because I did gymnastics when I was younger and they required new equipment," Ms Dynamite explained to the media.
Two years ago, they gave their funds to the community center that nurtured their act, alongside other local music groups.
Also 1994 winners the group gave their winnings to a MS organization after a acquaintance was found to have the disease.
"The victory was ample," stated vocalist Small. "The prize was the bonus but we could do without the extra, because we had the main prize. So our victory affected another person's life."
Recently, the MVT shared it had rescued two grassroots venues in that region, by bringing them into public stewardship.
The first in Southampton and the other in that location were bought under the community ownership initiative, which is backed by Arts Council England and supporters who acquire "stakes" in the buildings.
