The artist has donated the entirety of his £25k honor winnings to the trust for venues, which operates to preserve the UK's independent concert spaces.
The star was given the award on mid-October as his third album People Watching was declared the top album of the previous year.
The musician has decided to give the cash to the MVT, in acknowledgment of the vital role small stages had in his beginning days.
"I personally couldn't be pursuing what I am doing today if it wasn't for all the performances I performed around the North East, and elsewhere, when I was just getting going," stated Fender. "These venues are renowned, but they are struggling."
Since the start of 2023, over 150 of these locations have ceased operations – about one-sixth of the whole industry in the UK.
Over the past year, major artists including Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the MVT in its initiatives to keep the scene afloat, by including a modest fee to their ticket prices, which benefits local stages.
Sam Fender also participated, generating more than £100,000 on his 2024 arena tour to support thirty-eight local spots across the UK.
The donation assisted locations that were confronting potential shutdown due to issues caused by flooding, fire incidents and personal losses, as well as permit problems, conflicts and sound issues.
Some locations were granted financial assistance in improving infrastructure and technical equipment that directly benefitted performers and audiences.
"The concept that money from concerts in big venues supports the smaller venues, where it kicks off for performers like me, is just logical," the star has commented.
Fender is not the first artist to contribute his Mercury Prize prize money to charitable organizations.
Back when Pulp earned the trophy in the year 1996 for their record Different Class, vocalist the singer announced that the act would donate their cash to the non-profit War Child.
That year, artist Ms Dynamite split her prize between multiple charities, such as the children's charity and a Sickle Cell charity.
"Additionally, I contributed a grand to my local community centre, to their classes, because I trained in gymnastics when I was younger and they required better apparatus," the artist explained to the media.
Two years ago, the band contributed their prize money to the youth organization that developed their act, in addition to other grassroots music organisations.
Also 1994 winners the group donated their prize to a multiple sclerosis charity after a friend was found to have the illness.
"Winning was quite enough," remarked singer Heather Small. "The money was the extra but we didn't need the extra, because we had the main prize. So our success touched another person's life."
Last week, the Music Venues Trust shared it had saved several local spots in that region, by transferring them to community ownership.
One venue in Southampton and the other in the city were purchased under the Own Our Venues scheme, which is backed by a national body and music fans who acquire "ownership units" in the buildings.
