The star has given the entirety of his twenty-five thousand pound award cash to the trust for venues, which functions to save the Britain's small live music spots.
He was presented with the award on mid-October as his new release the album was chosen as the best record of the past year.
The musician has opted to hand the money over to the Music Venues Trust, in recognition of the vital role local spots had in his initial steps.
"I personally wouldn't be doing this success if it hadn't been for all the gigs I performed around the area, and further afield, when I was just getting going," stated the artist. "These locations are iconic, but they are struggling."
Since the start of 2023, more than 150 of these venues have ceased operations – roughly one-sixth of the total UK scene.
In the last year, well-known musicians including Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its initiatives to keep the scene afloat, by including a small levy to their ticket costs, which supports independent venues.
Sam Fender also joined in, raising over £100k on his recent tour to assist thirty-eight local spots across England, Scotland, and Wales.
The donation assisted venues that were facing potential shutdown due to issues stemming from water damage, fires and bereavements, as well as permit problems, legal disputes and noise complaints.
Some locations obtained funding support in upgrading facilities and technical equipment that directly benefitted performers and audiences.
"The idea that revenue from shows in big venues helps the smaller venues, where it begins for musicians like me, is just sensible," Fender has stated.
Fender is among several artists to contribute his Mercury Prize funds to charitable organizations.
When the band received the award in the year 1996 for their record their work, vocalist Cocker announced that the act would contribute their cash to the charity the charity.
In 2002, musician Ms Dynamite split her award between several good causes, like the children's charity and a charity for Sickle Cell.
"And I gave a thousand pounds to my local community centre, to their gymnastics class, because I trained in gymnastics when I was a child and they lacked new equipment," the artist explained to outlets.
Two years ago, the band gave their funds to the youth organization that nurtured their band, as well as other local music groups.
And winners that year they gave their winnings to a MS organization after a close contact was found to have the illness.
"Winning was ample," stated artist the singer. "The cash was the extra but we didn't require the cherry, because we had the main prize. So our success affected the lives of others."
Last week, the Music Venues Trust announced it had rescued two grassroots venues in that region, by transferring them to community ownership.
The Joiners in Southampton and The Croft in the city were bought under the public acquisition scheme, which is backed by Arts Council England and enthusiasts who buy "shares" in the properties.