The artist has given the entirety of his twenty-five thousand pound award cash to the trust for venues, which functions to save the Britain's small concert spaces.
The star was presented with the prize on 16 October as his third album People Watching was declared the outstanding release of the last 12 months.
Fender has opted to give the cash to the MVT, in recognition of the vital role local spots played in his initial steps.
"I would not have achieved what I am doing today if it wasn't for all the gigs I did around the region, and beyond, when I was starting out," remarked Sam Fender. "These venues are renowned, but they are in difficulty."
Since the start of 2023, more than 150 of these spaces have shut down – about one-sixth of the whole industry in the UK.
In the last year, top acts such as Pulp, Coldplay, Katy Perry and Sheeran have all backed the trust in its efforts to help venues survive, by including a minor surcharge to their ticket prices, which benefits independent venues.
Sam Fender also joined in, collecting in excess of £100,000 on his recent tour to assist 38 local spots across England, Scotland, and Wales.
These funds helped locations that were dealing with possible closure due to difficulties caused by water damage, fires and family tragedies, as well as regulatory hurdles, court cases and neighbor objections.
Some locations received monetary aid in improving infrastructure and sound and lighting systems that helped artists and concertgoers.
"The notion that funds from shows in large arenas supports the independent spots, where it begins for musicians like me, is just logical," the star has commented.
The musician is not the first artist to contribute his Mercury Prize winnings to worthy causes.
When the band earned the award in the year 1996 for their release the album, frontman the singer declared that the act would give their prize money to the charity the charity.
In 2002, musician she divided her award across a few organizations, such as the children's charity and a Sickle Cell organization.
"Additionally, I donated a thousand pounds to the center, to their classes, because I did gymnastics when I was a child and they lacked better apparatus," Ms Dynamite explained to outlets.
In recent years, Ezra Collective contributed their prize money to the youth organization that developed their group, in addition to other local music groups.
Additionally 1994 winners M People donated their winnings to a multiple sclerosis charity after a friend was found to have the condition.
"Winning was sufficient," said singer the singer. "The money was the bonus but we didn't need the cherry, because we had the honor. So our winning affected another person's life."
Recently, the trust shared it had saved two local spots in south-east England, by transferring them to public stewardship.
The first in Southampton and The Croft in that location were purchased under the community ownership program, which is supported by the arts council and music fans who buy "stakes" in the venues.