The artist has donated the entirety of his £25k honor cash to the trust for venues, which works to protect the United Kingdom's grassroots music venues.
He was awarded the prize on October 16 as his latest record his work was declared the best record of the past year.
He has chosen to give the cash to the MVT, in appreciation of the vital role small stages played in his early career.
"As an artist wouldn't be doing what I am doing today if it wasn't for all the shows I played around the area, and beyond, when I was beginning," remarked Sam Fender. "These locations are renowned, but they are in difficulty."
From early 2023 onward, over 150 of these locations have shut down – about 16 percent of the total UK scene.
In the last year, top acts including Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the MVT in its initiatives to help venues survive, by applying a modest fee to their ticket prices, which supports local stages.
Sam Fender also joined in, collecting more than £100,000 on his 2024 arena tour to assist thirty-eight grassroots venues across England, Scotland, and Wales.
The money helped locations that were dealing with possible closure due to issues caused by water damage, fire incidents and personal losses, as well as permit problems, court cases and sound issues.
Some locations received monetary aid in modernizing facilities and technical equipment that directly benefitted artists and concertgoers.
"The concept that revenue from concerts in large arenas supports the smaller venues, where it begins for performers like me, is just sensible," the star has commented.
The musician is far from the only musician to donate his Mercury Prize funds to charitable organizations.
When they received the trophy in 1996 for their album Different Class, lead singer Jarvis Cocker declared that the group would donate their winnings to the charity War Child.
During 2002, musician the artist split her award between several organizations, including the NSPCC and a Sickle Cell organization.
"And I gave a £1,000 to the center, to their gymnastics class, because I did gymnastics when I was growing up and they lacked better apparatus," Ms Dynamite told a publication.
Two years ago, Ezra Collective contributed their prize money to the youth organization that supported their group, alongside other independent music bodies.
And 1994 winners M People gave their award to a charity for MS after a acquaintance was diagnosed the illness.
"The victory was ample," remarked artist Small. "The money was the cherry on top but we could do without the cherry, because we had the honor. So our winning touched the lives of others."
In the past week, the MVT revealed it had saved a couple of small stages in south-east England, by transferring them to public stewardship.
The Joiners in that area and The Croft in Bristol were purchased under the community ownership scheme, which is funded by the arts council and music fans who acquire "shares" in the buildings.
