The artist has given the complete sum of his £25k award winnings to the trust for venues, which functions to protect the United Kingdom's independent music venues.
The star was presented with the prize on mid-October as his latest record People Watching was chosen as the top album of the previous year.
He has decided to hand the money over to the MVT, in appreciation of the vital role grassroots venues played in his beginning days.
"I would not have achieved this success if it weren't for all the shows I played around the region, and beyond, when I was starting out," stated the artist. "These locations are renowned, but they are facing challenges."
Since the start of 2023, at least 150 of these venues have shut down – approximately one-sixth of the whole industry in the UK.
In the last year, major artists such as the band Pulp, Coldplay, Katy Perry and Sheeran have all aided the Music Venues Trust in its initiatives to support the industry, by applying a small levy to their ticket costs, which goes to help independent venues.
He also joined in, generating more than £100,000 on his recent tour to support numerous grassroots venues across the UK.
The money supported locations that were dealing with imminent closure due to issues stemming from flooding, blazes and family tragedies, as well as permit problems, court cases and noise complaints.
Additional spaces obtained monetary aid in modernizing amenities and technical equipment that directly benefitted performers and fans.
"The concept that revenue from concerts in major spaces supports the local stages, where it all starts for artists like me, is just sensible," Fender has commented.
Fender is not the first artist to contribute his Mercury Prize prize money to charitable organizations.
When they won the trophy in the mid-90s for their album their work, lead singer Cocker declared that the act would contribute their cash to the non-profit the charity.
During 2002, musician the artist divided her bounty among several good causes, such as the children's charity and a Sickle Cell charity.
"I also donated a grand to the center, to their gymnastics program, because I practiced gymnastics when I was a child and they lacked better apparatus," Ms Dynamite told the media.
Two years ago, they donated their prize money to the local youth club that developed their group, as well as other local music groups.
Also the 1994 recipients M People donated their award to a MS organization after a friend was diagnosed the illness.
"The victory was sufficient," said singer the singer. "The money was the bonus but we didn't require the extra, because we had the cake. So our success touched another person's life."
Recently, the trust shared it had protected a couple of local spots in the South East, by placing them under public stewardship.
The first in that area and The Croft in Bristol were acquired under the public acquisition initiative, which is backed by the arts council and music fans who buy "stakes" in the venues.
