The artist has given the entirety of his £25,000 honor prize money to the trust for venues, which operates to save the UK's independent concert spaces.
The star was awarded the cheque on 16 October as his new release the album was declared the outstanding release of the previous year.
Fender has opted to hand the money over to the MVT, in recognition of the essential function grassroots venues fulfilled in his early career.
"I personally couldn't be pursuing what I am doing today if it wasn't for all the shows I did around the region, and beyond, when I was beginning," remarked the artist. "These locations are iconic, but they are struggling."
From early 2023 onward, over 150 of these venues have shut down – approximately 16% of the total UK scene.
Over the past year, well-known musicians like Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all aided the MVT in its efforts to keep the scene afloat, by including a small levy to their ticket costs, which goes to help smaller concert halls.
Fender also joined in, collecting in excess of £100,000 on his live tour to help 38 small stages across the UK.
The donation assisted spaces that were facing potential shutdown due to issues arising from water damage, fire incidents and bereavements, as well as regulatory hurdles, legal disputes and sound issues.
Some locations were granted funding support in modernizing infrastructure and sound and lighting systems that directly benefitted performers and fans.
"The idea that money from performances in big venues helps the smaller venues, where it all starts for artists like me, is just sensible," Sam Fender has commented.
Fender is among several artists to give his Mercury Prize winnings to good deeds.
Back when Pulp earned the trophy in 1996 for their album the album, frontman Jarvis Cocker announced that the group would donate their prize money to the organization War Child.
That year, artist Ms Dynamite divided her prize across multiple organizations, like the NSPCC and a Sickle Cell charity.
"I also gave a thousand pounds to the center, to their gymnastics class, because I practiced gymnastics when I was growing up and they required updated gear," she told a publication.
Two years ago, the band donated their prize money to the local youth club that supported their act, as well as other independent music bodies.
Also the 1994 recipients the group gave their award to a MS organization after a friend was found to have the illness.
"Winning was quite enough," said singer Small. "The money was the cherry on top but we didn't need the cherry, because we had the honor. So our success impacted another person's life."
In the past week, the MVT announced it had saved a couple of grassroots venues in south-east England, by placing them under local control.
The Joiners in that area and the second in that location were purchased under the Own Our Venues initiative, which is backed by the arts council and music fans who acquire "stakes" in the buildings.