The artist has donated the complete sum of his £25k award winnings to the trust for venues, which functions to preserve the UK's independent concert spaces.
He was awarded the cheque on mid-October as his third album his work was declared the outstanding release of the last 12 months.
Fender has opted to donate the funds to the MVT, in recognition of the vital role grassroots venues fulfilled in his early career.
"I wouldn't be doing this success if it weren't for all the performances I performed around the region, and further afield, when I was just getting going," said Sam Fender. "These venues are iconic, but they are in difficulty."
Since the start of 2023, over 150 of these venues have shut down – about 16 percent of the whole industry in the UK.
In the last year, major artists including the band Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its efforts to support the industry, by applying a small levy to their ticket costs, which goes to help local stages.
He also took part, collecting more than £100,000 on his 2024 arena tour to support 38 grassroots venues across the UK.
These funds assisted spaces that were confronting potential shutdown due to issues caused by water damage, fires and bereavements, as well as regulatory hurdles, conflicts and noise complaints.
Some locations received financial assistance in modernizing amenities and technical equipment that positively impacted performers and audiences.
"The idea that money from performances in large arenas backs the independent spots, where it all starts for musicians like me, is just common sense," Sam Fender has said.
Fender is among several artists to donate his Mercury Prize funds to good deeds.
When they earned the trophy in 1996 for their release Different Class, lead singer Cocker stated that the act would donate their prize money to the non-profit War Child.
During 2002, musician Ms Dynamite shared her bounty between several good causes, including the children's charity and a charity for Sickle Cell.
"And I donated a thousand pounds to my local community centre, to their gymnastics class, because I trained in gymnastics when I was growing up and they required better apparatus," she explained to a publication.
Previously, Ezra Collective contributed their prize money to the youth organization that developed their group, as well as other grassroots music organisations.
Also winners that year the group donated their winnings to a MS organization after a close contact was identified with the disease.
"Receiving the award was ample," remarked vocalist Heather Small. "The prize was the bonus but we didn't need the bonus, because we had the main prize. So our winning affected another person's life."
In the past week, the trust announced it had protected several grassroots venues in south-east England, by bringing them into local control.
One venue in the city and The Croft in Bristol were purchased under the Own Our Venues scheme, which is supported by the arts council and supporters who buy "shares" in the properties.
