The artist has handed over the full amount of his £25,000 honor prize money to the trust for venues, which operates to protect the United Kingdom's small music venues.
Fender was presented with the prize on October 16 as his third album People Watching was named the best record of the past year.
The musician has decided to donate the funds to the Music Venues Trust, in appreciation of the crucial part small stages had in his initial steps.
"I would not have achieved my current career if it weren't for all the gigs I did around the North East, and further afield, when I was beginning," said the artist. "These locations are iconic, but they are in difficulty."
From early 2023 onward, more than 150 of these spaces have shut down – approximately 16 percent of the entire UK sector.
Recently, well-known musicians such as the band 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 admission fees, which benefits independent venues.
Sam Fender also took part, raising more than £100,000 on his live tour to assist thirty-eight small stages across Britain.
The money helped venues that were facing possible closure due to challenges caused by floods, fires and family tragedies, as well as permit problems, conflicts and noise complaints.
Some locations obtained financial assistance in upgrading infrastructure and sound and lighting systems that directly benefitted performers and audiences.
"The idea that money from shows in large arenas helps the independent spots, where it kicks off for musicians like me, is just sensible," the star has stated.
The musician is not the first artist to give his Mercury Prize prize money to good deeds.
In Pulp earned the trophy in 1996 for their record the album, vocalist Jarvis Cocker stated that the group would donate their winnings to the non-profit War Child.
That year, musician she shared her prize among several organizations, including the NSPCC and a Sickle Cell charity.
"And I contributed a grand to the center, to their classes, because I practiced gymnastics when I was a child and they required updated gear," Ms Dynamite explained to the media.
Previously, they gave their funds to the community center that supported their band, in addition to other local music groups.
And winners that year M People gave their award to a MS organization after a friend was diagnosed the condition.
"Receiving the award was sufficient," said artist Heather Small. "The money was the bonus but we didn't need the extra, because we had the cake. So our winning affected somebody else's life."
Last week, the MVT announced it had saved two local spots in that region, by bringing them into community ownership.
One venue in that area and The Croft in Bristol were bought under the public acquisition scheme, which is funded by the arts council and supporters who buy "stakes" in the buildings.
