The artist has donated the full amount of his twenty-five thousand pound honor cash to the trust for venues, which works to preserve the Britain's small music venues.
He was presented with the cheque on 16 October as his latest record his work was chosen as the best record of the previous year.
He has chosen to donate the funds to the MVT, in acknowledgment of the crucial part local spots had in his early career.
"I personally wouldn't be doing what I am doing today if it hadn't been for all the performances I performed around the North East, and further afield, when I was starting out," said the artist. "These spaces are renowned, but they are in difficulty."
Since the start of 2023, at least 150 of these venues have shut down – approximately 16% of the entire UK sector.
In the last year, major artists such as Pulp, the group Coldplay, Katy Perry and Sheeran have all aided the Music Venues Trust in its initiatives to keep the scene afloat, by adding a minor surcharge to their ticket costs, which supports smaller concert halls.
He also participated, raising over £100k on his recent tour to support numerous grassroots venues across the UK.
The donation supported spaces that were facing imminent closure due to issues caused by flooding, fire incidents and family tragedies, as well as licensing issues, conflicts and neighbor objections.
Other venues received financial assistance in improving amenities and gear that helped musicians and audiences.
"The idea that money from shows in large arenas supports the smaller venues, where it kicks off for musicians like me, is just logical," Sam Fender has said.
The musician is not the first artist to contribute his Mercury Prize funds to good deeds.
When Pulp earned the prize in 1996 for their record their work, frontman the singer declared that the band would give their cash to the organization War Child.
In 2002, musician she divided her bounty among multiple organizations, including the NSPCC and a Sickle Cell charity.
"Additionally, I gave a £1,000 to the center, to their gymnastics class, because I trained in gymnastics when I was growing up and they required updated gear," she told the media.
In recent years, the band gave their funds to the community center that nurtured their group, as well as other independent music bodies.
Also the 1994 recipients they contributed their award to a multiple sclerosis charity after a friend was found to have the condition.
"Winning was ample," remarked artist Heather Small. "The prize was the extra but we didn't require the extra, because we had the cake. So our victory affected somebody else's life."
Last week, the trust revealed it had rescued two local spots in the South East, by bringing them into local control.
The Joiners in that area and The Croft in the city were purchased under the Own Our Venues initiative, which is backed by the arts council and enthusiasts who buy "shares" in the buildings.