The artist has handed over the full amount of his £25k award prize money to the trust for venues, which operates to preserve the Britain's independent live music spots.
He was presented with the prize on 16 October as his latest record People Watching was named the top album of the last 12 months.
Fender has opted to donate the funds to the trust, in recognition of the vital role local spots played in his early career.
"I personally wouldn't be doing what I am doing today if it wasn't for all the shows I did around the North East, and beyond, when I was just getting going," remarked Sam Fender. "These spaces are legendary, but they are in difficulty."
Since the start of 2023, at least 150 of these venues have permanently closed – approximately 16 percent of the whole industry in the UK.
In the last year, well-known musicians like Pulp, Coldplay, Katy Perry and Sheeran have all supported the trust in its attempts to support the industry, by including a small levy to their ticket prices, which benefits smaller concert halls.
He also participated, raising more than £100,000 on his recent tour to assist 38 local spots across England, Scotland, and Wales.
The donation helped spaces that were dealing with potential shutdown due to issues arising from floods, blazes and family tragedies, as well as regulatory hurdles, legal disputes and noise complaints.
Additional spaces obtained funding support in improving amenities and gear that directly benefitted performers and audiences.
"The idea that funds from performances in big venues backs the smaller venues, where it all starts for musicians like me, is just common sense," Fender has commented.
He is among several artists to contribute his Mercury Prize funds to charitable organizations.
When Pulp won the trophy in the mid-90s for their album Different Class, vocalist the singer declared that the group would give their cash to the charity War Child.
During 2002, artist Ms Dynamite split her award among a few organizations, including the children's charity and a Sickle Cell charity.
"And I contributed a thousand pounds to the center, to their classes, because I practiced gymnastics when I was a child and they lacked new equipment," she told the media.
Previously, the band contributed their funds to the local youth club that nurtured their band, alongside other local music groups.
Additionally 1994 winners the group gave their winnings to a MS organization after a friend was found to have the disease.
"Receiving the award was quite enough," stated vocalist Small. "The money was the cherry on top but we didn't need the cherry, because we had the main prize. So our winning touched another person's life."
Last week, the trust revealed it had rescued a couple of small stages in south-east England, by placing them under public stewardship.
The Joiners in Southampton and the other in the city were bought under the Own Our Venues initiative, which is backed by a national body and enthusiasts who acquire "stakes" in the venues.
