The star has handed over the entirety of his £25,000 award winnings to the trust for venues, which works to save the United Kingdom's independent concert spaces.
The star was awarded the prize on 16 October as his third album the album was chosen as the top album of the previous year.
He has decided to hand the money over to the trust, in acknowledgment of the crucial part local spots fulfilled in his beginning days.
"As an artist wouldn't be doing my current career if it weren't for all the shows I performed around the region, and elsewhere, when I was starting out," said the artist. "These spaces are iconic, but they are struggling."
From early 2023 onward, at least 150 of these locations have permanently closed – about 16 percent of the total UK scene.
In the last year, major artists like the band Pulp, Coldplay, Katy Perry and Sheeran have all aided the Music Venues Trust in its efforts to keep the scene afloat, by including a modest fee to their admission fees, which benefits independent venues.
Sam Fender also took part, collecting more than £100,000 on his live tour to assist 38 local spots across Britain.
The donation assisted locations that were facing potential shutdown due to issues caused by floods, blazes and family tragedies, as well as permit problems, legal disputes and noise complaints.
Additional spaces obtained financial assistance in modernizing amenities and gear that helped musicians and audiences.
"The idea that money from concerts in big venues supports the independent spots, where it all starts for musicians like me, is just sensible," Fender has said.
He is far from the only musician to give his Mercury Prize winnings to good deeds.
Back when the band won the trophy in the mid-90s for their record their work, frontman Jarvis Cocker stated that the band would give their winnings to the organization War Child.
That year, musician Ms Dynamite divided her bounty across multiple charities, including the NSPCC and a Sickle Cell charity.
"I also donated a grand to my local community centre, to their gymnastics class, because I did gymnastics when I was younger and they lacked new equipment," Ms Dynamite explained to the media.
Previously, they donated their winnings to the local youth club that nurtured their act, in addition to other independent music bodies.
Additionally the 1994 recipients they contributed their winnings to a MS organization after a friend was diagnosed the illness.
"Receiving the award was ample," remarked vocalist Small. "The cash was the extra but we didn't require the bonus, because we had the main prize. So our success touched the lives of others."
Recently, the MVT announced it had saved two grassroots venues in the South East, by placing them under community ownership.
The first in the city and the other in Bristol were acquired under the community ownership scheme, which is backed by Arts Council England and supporters who purchase "shares" in the properties.