The star has donated the complete sum of his £25k award cash to the MVT, which operates to save the UK's grassroots live music spots.
He was given the prize on 16 October as his third album People Watching was declared the best record of the previous year.
Fender has decided to donate the funds to the Music Venues Trust, in acknowledgment of the crucial part small stages played in his initial steps.
"I personally would not have achieved my current career if it wasn't for all the gigs I performed around the area, and elsewhere, when I was just getting going," remarked the artist. "These spaces are legendary, but they are struggling."
From early 2023 onward, more than 150 of these locations have permanently closed – about one-sixth of the whole industry in the UK.
Recently, well-known musicians including Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the Music Venues Trust in its attempts to help venues survive, by including a small levy to their admission fees, which benefits independent venues.
Sam Fender also joined in, collecting over £100k on his recent tour to help thirty-eight small stages across Britain.
These funds supported locations that were confronting potential shutdown due to difficulties arising from flooding, fire incidents and personal losses, as well as permit problems, conflicts and sound issues.
Some locations were granted financial assistance in improving facilities and technical equipment that directly benefitted performers and audiences.
"The notion that money from concerts in big venues backs the independent spots, where it all starts for musicians like me, is just common sense," Sam Fender has said.
The musician is not the first artist to contribute his Mercury Prize funds to good deeds.
When the band received the trophy in the year 1996 for their album Different Class, vocalist Cocker stated that the act would donate their prize money to the non-profit the charity.
In 2002, rapper and singer the artist shared her bounty between several organizations, including the NSPCC and a Sickle Cell organization.
"Additionally, I donated a thousand pounds to Highgate Newtown, to their classes, because I practiced gymnastics when I was younger and they lacked better apparatus," the artist explained to a publication.
In recent years, the band donated their winnings to the youth organization that supported their group, in addition to other local music groups.
Additionally winners that year they donated their winnings to a charity for MS after a acquaintance was identified with the disease.
"Winning was sufficient," remarked singer the singer. "The money was the bonus but we could do without the bonus, because we had the main prize. So our winning touched another person's life."
Last week, the MVT shared it had rescued two small stages in south-east England, by bringing them into local control.
The Joiners in the city and the other in Bristol were acquired under the public acquisition program, which is supported by Arts Council England and enthusiasts who acquire "ownership units" in the venues.
