The star has given the full amount of his £25,000 award cash to the trust for venues, which operates to protect the United Kingdom's small live music spots.
He was given the prize on October 16 as his latest record the album was named the top album of the last 12 months.
He has chosen to donate the funds to the MVT, in acknowledgment of the crucial part small stages had in his initial steps.
"As an artist wouldn't be doing this success if it hadn't been for all the shows I played around the North East, and beyond, when I was beginning," stated the artist. "These venues are legendary, but they are in difficulty."
From early 2023 onward, at least 150 of these locations have permanently closed – about one-sixth of the entire UK sector.
In the last year, top acts including Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the trust in its attempts to help venues survive, by applying a modest fee to their admission fees, which goes to help smaller concert halls.
Sam Fender also participated, raising more than £100,000 on his 2024 arena tour to assist 38 grassroots venues across Britain.
The donation assisted locations that were dealing with potential shutdown due to challenges stemming from flooding, fires and personal losses, as well as permit problems, conflicts and sound issues.
Some locations were granted financial assistance in modernizing infrastructure and technical equipment that directly benefitted musicians and audiences.
"The idea that money from concerts in major spaces helps the independent spots, where it all starts for performers like me, is just common sense," Fender has said.
Fender is not the first artist to donate his Mercury Prize winnings to charitable organizations.
In Pulp received the prize in the mid-90s for their record the album, lead singer Cocker declared that the band would contribute their prize money to the charity War Child.
In 2002, musician Ms Dynamite split her prize across a few good causes, including the NSPCC and a charity for Sickle Cell.
"And I donated a thousand pounds to the center, to their gymnastics class, because I trained in gymnastics when I was a child and they required new equipment," Ms Dynamite told outlets.
Previously, Ezra Collective gave their funds to the community center that supported their group, in addition to other independent music bodies.
Additionally winners that year the group contributed their prize to a charity for MS after a close contact was diagnosed the illness.
"Receiving the award was quite enough," said artist Heather Small. "The money was the cherry on top but we didn't require the cherry, because we had the main prize. So our winning affected somebody else's life."
In the past week, the Music Venues Trust shared it had protected two small stages in south-east England, by bringing them into local control.
One venue in Southampton and the other in that location were acquired under the community ownership initiative, which is backed by Arts Council England and supporters who buy "shares" in the venues.
