The star has donated the complete sum of his £25k honor cash to the trust for venues, which operates to protect the Britain's independent live music spots.
Fender was awarded the cheque on 16 October as his third album the album was chosen as the best record of the last 12 months.
Fender has decided to hand the money over to the MVT, in recognition of the crucial part grassroots venues fulfilled in his early career.
"As an artist couldn't be pursuing what I am doing today if it wasn't for all the gigs I played around the North East, and further afield, when I was starting out," said the artist. "These spaces are renowned, but they are facing challenges."
From early 2023 onward, over 150 of these spaces have permanently closed – about 16% of the entire UK sector.
Recently, major artists like Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its efforts to help venues survive, by applying a modest fee to their admission fees, which goes to help smaller concert halls.
Sam Fender also took part, raising more than £100,000 on his live tour to help thirty-eight small stages across England, Scotland, and Wales.
The donation assisted spaces that were dealing with potential shutdown due to challenges caused by floods, fires and personal losses, as well as licensing issues, conflicts and noise complaints.
Other venues received monetary aid in improving facilities and technical equipment that positively impacted performers and fans.
"The concept that funds from shows in big venues supports the independent spots, where it begins for musicians like me, is just common sense," Sam Fender has said.
Fender is far from the only musician to contribute his Mercury Prize winnings to worthy causes.
Back when they received the award in the year 1996 for their record Different Class, lead singer the singer stated that the act would contribute their prize money to the charity War Child.
In 2002, artist the artist divided her award across a few organizations, like the NSPCC and a charity for Sickle Cell.
"Additionally, I gave a grand to my local community centre, to their gymnastics program, because I trained in gymnastics when I was a child and they required new equipment," she told outlets.
Previously, they donated their prize money to the youth organization that nurtured their act, in addition to other local music groups.
Also winners that year the group donated their winnings to a charity for MS after a acquaintance was identified with the illness.
"Receiving the award was quite enough," remarked artist the singer. "The prize was the extra but we didn't need the cherry, because we had the honor. So our winning affected somebody else's life."
In the past week, the MVT announced it had rescued a couple of small stages in the South East, by transferring them to public stewardship.
One venue in the city and the second in that location were purchased under the community ownership program, which is supported by a national body and music fans who buy "ownership units" in the buildings.