The artist has handed over the entirety of his £25k honor cash to the trust for venues, which functions to preserve the UK's independent music venues.
Fender was given the award on October 16 as his new release his work was chosen as the top album of the past year.
He has decided to donate the funds to the trust, in acknowledgment of the crucial part grassroots venues fulfilled in his initial steps.
"As an artist wouldn't be doing what I am doing today if it hadn't been for all the performances I performed around the region, and further afield, when I was beginning," said the artist. "These venues are iconic, but they are struggling."
Beginning in 2023, over 150 of these locations have permanently closed – about 16 percent of the whole industry in the UK.
Recently, well-known musicians like the band Pulp, the group Coldplay, the singer Katy Perry and Sheeran have all supported the Music Venues Trust in its attempts to keep the scene afloat, by adding a minor surcharge to their ticket prices, which benefits smaller concert halls.
Fender also took part, collecting in excess of £100,000 on his live tour to help 38 grassroots venues across the UK.
The money assisted locations that were confronting possible closure due to difficulties stemming from flooding, fire incidents and family tragedies, as well as permit problems, legal disputes and noise complaints.
Additional spaces were granted funding support in upgrading facilities and gear that helped musicians and concertgoers.
"The idea that money from shows in large arenas backs the smaller venues, where it kicks off for performers like me, is just common sense," Sam Fender has commented.
He is not the first artist to donate his Mercury Prize funds to worthy causes.
When Pulp received the award in 1996 for their record their work, vocalist Cocker stated that the group would donate their cash to the organization War Child.
In 2002, artist the artist divided her award between several organizations, such as the children's charity and a Sickle Cell charity.
"And I gave a £1,000 to my local community centre, to their gymnastics class, because I did gymnastics when I was a child and they needed updated gear," Ms Dynamite told a publication.
In recent years, the band gave their prize money to the local youth club that supported their act, alongside other local music groups.
Additionally the 1994 recipients they gave their prize to a MS organization after a acquaintance was found to have the disease.
"Winning was ample," remarked vocalist the singer. "The money was the extra but we didn't require the extra, because we had the honor. So our success touched somebody else's life."
Recently, the Music Venues Trust revealed it had protected two grassroots venues in that region, by bringing them into community ownership.
The Joiners in Southampton and the second in the city were purchased under the public acquisition program, which is backed by a national body and enthusiasts who buy "ownership units" in the buildings.