The artist has donated the complete sum of his £25,000 honor cash to the trust for venues, which works to save the UK's grassroots live music spots.
He was presented with the prize on mid-October as his third album his work was chosen as the best record of the past year.
Fender has decided to give the cash to the trust, in recognition of the essential function local spots played in his beginning days.
"I couldn't be pursuing this success if it wasn't for all the performances I played around the region, and beyond, when I was beginning," remarked Fender. "These venues are renowned, but they are struggling."
Since the start of 2023, over 150 of these venues have ceased operations – approximately one-sixth of the whole industry in the UK.
Over the past year, well-known musicians like Pulp, Coldplay, Katy Perry and Ed Sheeran have all backed the Music Venues Trust in its efforts to support the industry, by including a small levy to their admission fees, which supports local stages.
Sam Fender also took part, generating more than £100,000 on his 2024 arena tour to help numerous small stages across England, Scotland, and Wales.
The money supported spaces that were dealing with potential shutdown due to difficulties caused by floods, fires and personal losses, as well as licensing issues, legal disputes and sound issues.
Some locations were granted monetary aid in upgrading infrastructure and technical equipment that directly benefitted musicians and concertgoers.
"The notion that money from shows in big venues supports the smaller venues, where it all starts for performers like me, is just common sense," the star has commented.
The musician is among several artists to contribute his Mercury Prize funds to charitable organizations.
In Pulp earned the award in the mid-90s for their release Different Class, lead singer the singer announced that the group would contribute their cash to the organization War Child.
That year, artist Ms Dynamite divided her bounty among several organizations, including the NSPCC and a charity for Sickle Cell.
"And I gave a thousand pounds to Highgate Newtown, to their gymnastics program, because I practiced gymnastics when I was growing up and they needed new equipment," the artist shared with the media.
In recent years, they contributed their funds to the community center that supported their band, alongside other local music groups.
Additionally winners that year they contributed their winnings to a charity for MS after a friend was diagnosed the condition.
"Winning was quite enough," stated artist Heather Small. "The prize was the extra but we didn't require the bonus, because we had the main prize. So our winning touched another person's life."
Recently, the Music Venues Trust shared it had protected two local spots in that region, by transferring them to local control.
The Joiners in the city and the second in that location were purchased under the public acquisition scheme, which is supported by Arts Council England and enthusiasts who buy "shares" in the buildings.
