The artist has donated the complete sum of his £25,000 award prize money to the trust for venues, which operates to protect the UK's independent live music spots.
He was given the award on 16 October as his latest record his work was declared the best record of the last 12 months.
Fender has decided to give the cash to the MVT, in recognition of the crucial part grassroots venues played in his early career.
"I personally wouldn't be doing this success if it hadn't been for all the performances I performed around the area, and beyond, when I was starting out," said the artist. "These venues are iconic, but they are in difficulty."
Since the start of 2023, over 150 of these spaces have permanently closed – roughly 16 percent of the total UK scene.
In the last year, major artists such as Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all backed the trust in its efforts to help venues survive, by adding a minor surcharge to their ticket prices, which goes to help smaller concert halls.
Sam Fender also took part, raising more than £100,000 on his live tour to support 38 local spots across Britain.
The donation assisted venues that were dealing with possible closure due to difficulties caused by water damage, blazes and family tragedies, as well as licensing issues, conflicts and sound issues.
Additional spaces were granted monetary aid in improving amenities and technical equipment that directly benefitted performers and concertgoers.
"The concept that money from performances in large arenas helps the smaller venues, where it kicks off for artists like me, is just sensible," Fender has commented.
He is among several artists to contribute his Mercury Prize winnings to good deeds.
When Pulp earned the trophy in 1996 for their album their work, vocalist Cocker declared that the group would contribute their cash to the non-profit War Child.
That year, musician she divided her prize between several organizations, such as the children's charity and a charity for Sickle Cell.
"And I contributed a £1,000 to my local community centre, to their classes, because I practiced gymnastics when I was growing up and they lacked new equipment," she told outlets.
Previously, they gave their funds to the community center that supported their band, as well as other grassroots music organisations.
Also winners that year they gave their prize to a multiple sclerosis charity after a close contact was diagnosed the illness.
"Receiving the award was quite enough," remarked singer the singer. "The cash was the extra but we didn't require the extra, because we had the main prize. So our winning touched another person's life."
Recently, the MVT shared it had saved several grassroots venues in the South East, by bringing them into community ownership.
The first in Southampton and The Croft in Bristol were purchased under the community ownership program, which is supported by Arts Council England and enthusiasts who purchase "shares" in the buildings.
