The artist has handed over the complete sum of his £25,000 honor cash to the trust for venues, which works to protect the UK's small live music spots.
Fender was presented with the cheque on 16 October as his third album his work was named the best record of the past year.
Fender has opted to give the cash to the MVT, in recognition of the essential function small stages had in his early career.
"I wouldn't be doing my current career if it weren't for all the performances I performed around the region, and elsewhere, when I was beginning," said Sam Fender. "These venues are legendary, but they are facing challenges."
Beginning in 2023, over 150 of these spaces have permanently closed – approximately 16% of the whole industry in the UK.
In the last year, major artists such as Pulp, Coldplay, Katy Perry and Ed Sheeran have all supported the trust in its efforts to support the industry, by adding a small levy to their ticket costs, which goes to help local stages.
Fender also joined in, raising more than £100,000 on his live tour to support numerous local spots across Britain.
The donation assisted spaces that were facing potential shutdown due to challenges arising from water damage, blazes and bereavements, as well as licensing issues, conflicts and neighbor objections.
Other venues received monetary aid in upgrading infrastructure and sound and lighting systems that helped artists and concertgoers.
"The notion that funds from performances in major spaces helps the independent spots, where it begins for musicians like me, is just common sense," Fender has stated.
He is among several artists to give his Mercury Prize winnings to worthy causes.
Back when the band earned the trophy in the mid-90s for their record the album, lead singer Jarvis Cocker declared that the act would donate their winnings to the organization the charity.
In 2002, rapper and singer the artist divided her bounty among multiple organizations, like the children's charity and a charity for Sickle Cell.
"I also contributed a grand to the center, to their classes, because I practiced gymnastics when I was younger and they lacked better apparatus," Ms Dynamite told a publication.
Two years ago, Ezra Collective donated their winnings to the local youth club that nurtured their group, as well as other grassroots music organisations.
Also winners that year they donated their winnings to a multiple sclerosis charity after a close contact was identified with the disease.
"Winning was quite enough," stated vocalist Heather Small. "The prize was the extra but we could do without the cherry, because we had the cake. So our success impacted somebody else's life."
In the past week, the trust announced it had rescued a couple of grassroots venues in south-east England, by bringing them into local control.
The first in the city and the other in Bristol were bought under the community ownership scheme, which is funded by Arts Council England and supporters who acquire "shares" in the buildings.
