The artist has given the full amount of his £25k honor prize money to the trust for venues, which functions to protect the UK's small live music spots.
He was given the cheque on 16 October as his latest record his work was named the top album of the past year.
The musician has chosen to donate the funds to the trust, in appreciation of the vital role small stages fulfilled in his beginning days.
"As an artist would not have achieved this success if it weren't for all the shows I did around the area, and elsewhere, when I was just getting going," stated Fender. "These locations are iconic, but they are facing challenges."
Beginning in 2023, more than 150 of these locations have permanently closed – approximately 16% of the total UK scene.
Recently, major artists including Pulp, Coldplay, the singer Katy Perry and Sheeran have all supported the MVT in its attempts to keep the scene afloat, by including a modest fee to their ticket prices, which supports smaller concert halls.
He also took part, collecting over £100k on his 2024 arena tour to support numerous local spots across the UK.
The money supported spaces that were confronting potential shutdown due to challenges stemming from water damage, fires and bereavements, as well as licensing issues, court cases and noise complaints.
Other venues received monetary aid in modernizing facilities and sound and lighting systems that helped musicians and audiences.
"The concept that money from shows in large arenas helps the smaller venues, where it all starts for artists like me, is just common sense," Sam Fender has stated.
Fender is far from the only musician to donate his Mercury Prize prize money to good deeds.
When the band received the trophy in the mid-90s for their album the album, vocalist the singer announced that the band would donate their prize money to the non-profit War Child.
That year, artist Ms Dynamite shared her bounty between several charities, like the children's charity and a charity for Sickle Cell.
"And I gave a grand to Highgate Newtown, to their gymnastics class, because I practiced gymnastics when I was a child and they needed updated gear," the artist explained to outlets.
In recent years, the band donated their prize money to the community center that supported their act, alongside other grassroots music organisations.
Also the 1994 recipients the group donated their winnings to a charity for MS after a friend was identified with the disease.
"The victory was quite enough," remarked vocalist Heather Small. "The money was the cherry on top but we could do without the extra, because we had the cake. So our winning affected another person's life."
Last week, the Music Venues Trust revealed it had rescued a couple of grassroots venues in south-east England, by bringing them into local control.
The Joiners in the city and The Croft in that location were bought under the community ownership program, which is backed by the arts council and music fans who acquire "ownership units" in the venues.