The star has given the complete sum of his twenty-five thousand pound award cash to the trust for venues, which works to save the United Kingdom's grassroots music venues.
The star was given the award on 16 October as his third album his work was chosen as the outstanding release of the past year.
Fender has opted to hand the money over to the trust, in appreciation of the vital role small stages had in his initial steps.
"As an artist wouldn't be doing my current career if it wasn't for all the gigs I played around the North East, and beyond, when I was beginning," said the artist. "These venues are renowned, but they are facing challenges."
From early 2023 onward, at least 150 of these locations have permanently closed – about 16 percent of the entire UK sector.
Over the past year, well-known musicians like Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all supported the trust in its attempts to keep the scene afloat, by including a modest fee to their ticket costs, which goes to help local stages.
Sam Fender also joined in, raising more than £100,000 on his live tour to help numerous small stages across Britain.
These funds supported locations that were confronting potential shutdown due to issues arising from flooding, blazes and personal losses, as well as licensing issues, court cases and neighbor objections.
Additional spaces received funding support in improving facilities and technical equipment that positively impacted artists and fans.
"The concept that revenue from concerts in large arenas backs the independent spots, where it all starts for performers like me, is just sensible," the star has said.
He is far from the only musician to donate his Mercury Prize prize money to worthy causes.
Back when they earned the award in 1996 for their record their work, lead singer Jarvis Cocker announced that the act would donate their cash to the charity War Child.
That year, rapper and singer the artist divided her bounty among several organizations, such as the children's charity and a Sickle Cell charity.
"Additionally, I donated a grand to the center, to their classes, because I practiced gymnastics when I was a child and they needed updated gear," she explained to a publication.
In recent years, they gave their prize money to the community center that supported their band, alongside other local music groups.
Also winners that year the group contributed their prize to a multiple sclerosis charity after a close contact was identified with the condition.
"The victory was ample," stated vocalist Heather Small. "The cash was the bonus but we didn't need the extra, because we had the cake. So our victory affected somebody else's life."
Recently, the trust announced it had rescued several small stages in the South East, by bringing them into local control.
The first in Southampton and The Croft in Bristol were purchased under the community ownership program, which is backed by the arts council and music fans who purchase "ownership units" in the buildings.