The star has donated the full amount of his £25,000 award prize money to the trust for venues, which functions to save the United Kingdom's independent live music spots.
He was presented with the cheque on mid-October as his new release his work was named the best record of the past year.
Fender has decided to hand the money over to the trust, in acknowledgment of the crucial part local spots played in his beginning days.
"I personally couldn't be pursuing this success if it hadn't been for all the shows I performed around the North East, and elsewhere, when I was starting out," stated the artist. "These spaces are legendary, but they are facing challenges."
From early 2023 onward, over 150 of these venues have ceased operations – approximately one-sixth of the whole industry in the UK.
Recently, top acts including Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all backed the trust in its efforts to support the industry, by including a modest fee to their admission fees, which benefits local stages.
Sam Fender also took part, collecting more than £100,000 on his recent tour to help 38 grassroots venues across the UK.
These funds helped venues that were facing possible closure due to difficulties stemming from flooding, fire incidents and bereavements, as well as licensing issues, court cases and neighbor objections.
Additional spaces were granted monetary aid in upgrading infrastructure and gear that directly benefitted artists and concertgoers.
"The idea that money from concerts in large arenas helps the smaller venues, where it kicks off for performers like me, is just logical," the star has stated.
The musician is among several artists to donate his Mercury Prize funds to charitable organizations.
In they won the prize in the mid-90s for their album the album, vocalist Cocker announced that the group would donate their prize money to the organization War Child.
During 2002, artist Ms Dynamite divided her prize among several charities, like the children's charity and a Sickle Cell organization.
"And I contributed a grand to Highgate Newtown, to their gymnastics class, because I practiced gymnastics when I was growing up and they lacked updated gear," the artist told a publication.
Previously, they contributed their winnings to the community center that nurtured their act, in addition to other grassroots music organisations.
Also winners that year they gave their winnings to a charity for MS after a acquaintance was found to have the disease.
"Receiving the award was quite enough," said singer Heather Small. "The money was the cherry on top but we didn't require the cherry, because we had the honor. So our victory affected somebody else's life."
Recently, the trust revealed it had saved several local spots in the South East, by bringing them into community ownership.
The first in Southampton and The Croft in that location were purchased under the community ownership scheme, which is backed by the arts council and enthusiasts who buy "ownership units" in the venues.