The star has handed over the complete sum of his £25k award prize money to the MVT, which functions to save the UK's small music venues.
The star was presented with the prize on mid-October as his third album his work was chosen as the best record of the past year.
The musician has decided to hand the money over to the trust, in acknowledgment of the crucial part local spots fulfilled in his beginning days.
"I personally wouldn't be doing what I am doing today if it hadn't been for all the shows I performed around the North East, and elsewhere, when I was starting out," said Fender. "These spaces are renowned, but they are struggling."
From early 2023 onward, more than 150 of these locations have permanently closed – roughly one-sixth of the entire UK sector.
In the last year, major artists including the band Pulp, Coldplay, Katy Perry and Sheeran have all backed the MVT in its attempts to support the industry, by applying a small levy to their admission fees, which benefits local stages.
He also joined in, generating over £100k on his recent tour to support numerous grassroots venues across Britain.
The donation supported spaces that were dealing with imminent closure due to challenges stemming from flooding, fires and bereavements, as well as regulatory hurdles, court cases and sound issues.
Additional spaces were granted funding support in upgrading facilities and gear that helped musicians and fans.
"The notion that funds from concerts in major spaces helps the smaller venues, where it begins for performers like me, is just common sense," Fender has commented.
He is far from the only musician to give his Mercury Prize funds to worthy causes.
In they received the award in the mid-90s for their record Different Class, vocalist the singer stated that the act would give their winnings to the organization War Child.
That year, musician the artist split her award across a few organizations, such as the NSPCC and a Sickle Cell charity.
"I also donated a grand to Highgate Newtown, to their gymnastics class, because I practiced gymnastics when I was a child and they required updated gear," she told outlets.
In recent years, Ezra Collective gave their prize money to the local youth club that developed their band, as well as other grassroots music organisations.
And winners that year they contributed their winnings to a multiple sclerosis charity after a close contact was diagnosed the disease.
"The victory was sufficient," stated vocalist Small. "The cash was the cherry on top but we didn't need the bonus, because we had the main prize. So our winning touched another person's life."
Recently, the trust shared it had saved a couple of local spots in the South East, by placing them under public stewardship.
The Joiners in Southampton and the second in the city were purchased under the public acquisition initiative, which is backed by the arts council and music fans who purchase "stakes" in the buildings.