The star has given the entirety of his £25k honor winnings to the MVT, which functions to protect the Britain's small concert spaces.
Fender was given the award on mid-October as his latest record People Watching was named the outstanding release of the previous year.
The musician has decided to hand the money over to the trust, in acknowledgment of the vital role grassroots venues had in his early career.
"I would not have achieved what I am doing today if it weren't for all the shows I performed around the region, and further afield, when I was starting out," remarked the artist. "These locations are iconic, but they are facing challenges."
Since the start of 2023, more than 150 of these venues have shut down – approximately one-sixth of the whole industry in the UK.
In the last year, well-known musicians including Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its efforts to help venues survive, by including a minor surcharge to their ticket costs, which supports smaller concert halls.
Sam Fender also took part, collecting in excess of £100,000 on his recent tour to assist thirty-eight grassroots venues across the UK.
These funds supported spaces that were facing imminent closure due to issues arising from flooding, fire incidents and personal losses, as well as permit problems, legal disputes and neighbor objections.
Other venues were granted financial assistance in upgrading facilities and gear that directly benefitted musicians and fans.
"The notion that funds from performances in large arenas supports the local stages, where it begins for performers like me, is just common sense," Sam Fender has said.
Fender is among several artists to contribute his Mercury Prize funds to charitable organizations.
When they received the prize in the mid-90s for their release their work, frontman Jarvis Cocker announced that the band would donate their cash to the non-profit the charity.
That year, rapper and singer the artist divided her award between multiple charities, such as the NSPCC and a Sickle Cell organization.
"And I gave a £1,000 to my local community centre, to their gymnastics program, because I trained in gymnastics when I was younger and they required new equipment," she explained to the media.
Two years ago, they gave their winnings to the youth organization that developed their act, as well as other grassroots music organisations.
And winners that year they contributed their winnings to a MS organization after a friend was identified with the condition.
"The victory was ample," said singer Heather Small. "The money was the extra but we could do without the extra, because we had the main prize. So our victory impacted somebody else's life."
Last week, the Music Venues Trust revealed it had protected two grassroots venues in south-east England, by placing them under community ownership.
One venue in that area and The Croft in Bristol were purchased under the community ownership initiative, which is funded by a national body and music fans who acquire "shares" in the properties.
