The star has handed over the complete sum of his £25,000 award cash to the trust for venues, which works to protect the UK's small concert spaces.
He was presented with the award on 16 October as his latest record the album was chosen as the best record of the past year.
Fender has opted to give the cash to the MVT, in appreciation of the crucial part grassroots venues fulfilled in his early career.
"I personally wouldn't be doing this success if it weren't for all the shows I did around the North East, and elsewhere, when I was starting out," stated the artist. "These venues are legendary, but they are struggling."
Since the start of 2023, at least 150 of these spaces have shut down – about one-sixth of the whole industry in the UK.
Over the past year, well-known musicians like Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all backed the MVT in its attempts to support the industry, by including a modest fee to their ticket prices, which supports local stages.
Sam Fender also joined in, raising in excess of £100,000 on his recent tour to assist thirty-eight local spots across the UK.
The money assisted venues that were facing potential shutdown due to challenges arising from floods, fire incidents and personal losses, as well as regulatory hurdles, court cases and noise complaints.
Other venues received financial assistance in upgrading infrastructure and sound and lighting systems that helped artists and concertgoers.
"The notion that revenue from concerts in big venues backs the local stages, where it all starts for musicians like me, is just common sense," the star has commented.
Fender is far from the only musician to give his Mercury Prize winnings to worthy causes.
When Pulp won the trophy in 1996 for their album the album, lead singer Cocker stated that the band would donate their prize money to the organization War Child.
During 2002, rapper and singer Ms Dynamite divided her bounty among several organizations, like the NSPCC and a charity for Sickle Cell.
"I also contributed a £1,000 to my local community centre, to their classes, because I did gymnastics when I was a child and they lacked better apparatus," she told outlets.
Previously, the band donated their funds to the youth organization that developed their act, in addition to other independent music bodies.
And 1994 winners they gave their prize to a multiple sclerosis charity after a friend was found to have the condition.
"Winning was quite enough," said vocalist Small. "The cash was the bonus but we didn't require the cherry, because we had the honor. So our winning impacted the lives of others."
In the past week, the MVT shared it had protected two small stages in that region, by bringing them into community ownership.
The first in the city and The Croft in that location were purchased under the Own Our Venues scheme, which is backed by the arts council and music fans who acquire "shares" in the venues.
