The artist has given the complete sum of his £25k award cash to the trust for venues, which works to preserve the Britain's grassroots music venues.
He was awarded the prize on 16 October as his latest record People Watching was chosen as the top album of the last 12 months.
Fender has decided to donate the funds to the MVT, in recognition of the crucial part small stages had in his early career.
"I couldn't be pursuing my current career if it wasn't for all the shows I performed around the North East, and further afield, when I was starting out," said Fender. "These locations are renowned, but they are in difficulty."
Since the start of 2023, over 150 of these spaces have shut down – approximately 16 percent of the entire UK sector.
Recently, well-known musicians like Pulp, the group Coldplay, the singer Katy Perry and Ed Sheeran have all supported the Music Venues Trust in its efforts to support the industry, by including a modest fee to their ticket prices, which benefits smaller concert halls.
Fender also joined in, raising more than £100,000 on his live tour to assist thirty-eight local spots across Britain.
These funds supported venues that were dealing with imminent closure due to issues stemming from water damage, blazes and family tragedies, as well as licensing issues, court cases and neighbor objections.
Other venues were granted financial assistance in improving infrastructure and gear that helped artists and concertgoers.
"The notion that money from concerts in big venues supports the independent spots, where it all starts for performers like me, is just logical," the star has stated.
Fender is not the first artist to donate his Mercury Prize prize money to good deeds.
When Pulp won the trophy in the mid-90s for their release the album, vocalist Jarvis Cocker announced that the group would donate their prize money to the charity War Child.
During 2002, artist she shared her prize between multiple organizations, like the NSPCC and a Sickle Cell charity.
"Additionally, I donated a £1,000 to my local community centre, to their gymnastics class, because I did gymnastics when I was a child and they required updated gear," she explained to outlets.
In recent years, they gave their winnings to the community center that supported their act, as well as other grassroots music organisations.
And winners that year M People donated their award to a MS organization after a close contact was diagnosed the condition.
"Winning was quite enough," stated singer the singer. "The cash was the cherry on top but we didn't require the extra, because we had the cake. So our winning affected somebody else's life."
Last week, the MVT revealed it had saved a couple of grassroots venues in south-east England, by placing them under community ownership.
The Joiners in the city and the second in the city were purchased under the public acquisition program, which is backed by a national body and music fans who purchase "shares" in the venues.
