The star has handed over the complete sum of his £25,000 award cash to the trust for venues, which works to save the Britain's small live music spots.
Fender was awarded the prize on 16 October as his new release his work was chosen as the outstanding release of the last 12 months.
He has opted to hand the money over to the MVT, in appreciation of the crucial part grassroots venues played in his early career.
"I personally couldn't be pursuing my current career if it wasn't for all the shows I played around the North East, and beyond, when I was starting out," remarked Fender. "These venues are iconic, but they are in difficulty."
From early 2023 onward, more than 150 of these spaces have permanently closed – about one-sixth of the whole industry in the UK.
In the last year, major artists such as the band Pulp, Coldplay, the singer Katy Perry and Ed Sheeran have all backed the trust in its initiatives to help venues survive, by adding a minor surcharge to their ticket prices, which supports local stages.
Sam Fender also participated, collecting over £100k on his live tour to assist numerous local spots across England, Scotland, and Wales.
The donation assisted spaces that were dealing with possible closure due to challenges arising from flooding, fire incidents and personal losses, as well as regulatory hurdles, conflicts and sound issues.
Additional spaces were granted monetary aid in upgrading infrastructure and technical equipment that helped musicians and audiences.
"The idea that revenue from concerts in big venues backs the smaller venues, where it all starts for performers like me, is just sensible," Sam Fender has stated.
He is not the first artist to donate his Mercury Prize funds to worthy causes.
In they won the prize in the year 1996 for their album Different Class, lead singer Cocker declared that the act would donate their prize money to the charity War Child.
During 2002, musician Ms Dynamite split her bounty across a few charities, such as the children's charity and a charity for Sickle Cell.
"And I gave a grand to my local community centre, to their classes, because I trained in gymnastics when I was a child and they required updated gear," the artist explained to a publication.
Previously, Ezra Collective contributed their funds to the community center that supported their group, alongside other independent music bodies.
And the 1994 recipients the group donated their prize to a charity for MS after a friend was identified with the condition.
"The victory was ample," remarked artist the singer. "The prize was the cherry on top but we didn't require the extra, because we had the main prize. So our winning touched somebody else's life."
In the past week, the MVT revealed it had saved two small stages in that region, by transferring them to public stewardship.
The Joiners in Southampton and the other in the city were purchased under the Own Our Venues program, which is backed by a national body and enthusiasts who acquire "ownership units" in the properties.
