The star has donated the entirety of his £25,000 award cash to the MVT, which works to save the UK's grassroots concert spaces.
The star was presented with the award on October 16 as his latest record People Watching was named the outstanding release of the previous year.
He has chosen to donate the funds to the MVT, in acknowledgment of the vital role local spots had in his initial steps.
"As an artist couldn't be pursuing this success if it hadn't been for all the performances I played around the region, and beyond, when I was beginning," stated the artist. "These locations are legendary, but they are facing challenges."
From early 2023 onward, over 150 of these locations have permanently closed – roughly one-sixth of the entire UK sector.
In the last year, top acts like Pulp, Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its efforts to help venues survive, by adding a minor surcharge to their ticket prices, which benefits independent venues.
Sam Fender also participated, generating in excess of £100,000 on his live tour to assist 38 grassroots venues across Britain.
The money helped locations that were dealing with imminent closure due to difficulties caused by water damage, fire incidents and bereavements, as well as permit problems, court cases and sound issues.
Other venues obtained financial assistance in upgrading amenities and technical equipment that positively impacted musicians and concertgoers.
"The idea that revenue from shows in big venues supports the independent spots, where it begins for musicians like me, is just logical," the star has stated.
Fender is not the first artist to donate his Mercury Prize winnings to good deeds.
In Pulp received the award in the year 1996 for their album their work, frontman Jarvis Cocker announced that the group would donate their prize money to the charity War Child.
That year, musician Ms Dynamite divided her prize among several organizations, like the NSPCC and a Sickle Cell charity.
"I also donated a grand to my local community centre, to their gymnastics program, because I practiced gymnastics when I was younger and they needed updated gear," the artist explained to outlets.
In recent years, Ezra Collective contributed their funds to the local youth club that nurtured their band, alongside other grassroots music organisations.
Additionally 1994 winners M People contributed their winnings to a multiple sclerosis charity after a friend was identified with the illness.
"Receiving the award was ample," stated artist the singer. "The cash was the cherry on top but we could do without the bonus, because we had the main prize. So our victory affected somebody else's life."
In the past week, the Music Venues Trust revealed it had protected two grassroots venues in the South East, by placing them under community ownership.
The Joiners in Southampton and The Croft in Bristol were acquired under the community ownership scheme, which is funded by the arts council and enthusiasts who buy "ownership units" in the venues.
