The artist has donated the complete sum of his £25k award prize money to the trust for venues, which functions to save the UK's independent live music spots.
He was awarded the award on 16 October as his new release People Watching was named the outstanding release of the last 12 months.
The musician has chosen to donate the funds to the MVT, in appreciation of the crucial part local spots fulfilled in his beginning days.
"I wouldn't be doing what I am doing today if it weren't for all the gigs I played around the area, and beyond, when I was beginning," said Fender. "These venues are renowned, but they are struggling."
Beginning in 2023, at least 150 of these venues have ceased operations – about 16% of the entire UK sector.
Recently, major artists like Pulp, the group Coldplay, Katy Perry and Ed Sheeran have all supported the trust in its attempts to help venues survive, by applying a modest fee to their ticket costs, which supports smaller concert halls.
Fender also joined in, collecting in excess of £100,000 on his recent tour to assist numerous local spots across England, Scotland, and Wales.
The money helped spaces that were confronting possible closure due to issues caused by flooding, fire incidents and personal losses, as well as regulatory hurdles, legal disputes and sound issues.
Some locations were granted monetary aid in upgrading amenities and gear that helped performers and concertgoers.
"The concept that money from concerts in big venues backs the smaller venues, where it begins for musicians like me, is just logical," the star has said.
He is not the first artist to give his Mercury Prize funds to worthy causes.
In they won the trophy in 1996 for their release the album, frontman Cocker announced that the group would donate their prize money to the charity the charity.
In 2002, musician she split her bounty across a few good causes, such as the children's charity and a Sickle Cell charity.
"I also donated a thousand pounds to the center, to their gymnastics class, because I trained in gymnastics when I was growing up and they lacked better apparatus," the artist told a publication.
Two years ago, the band donated their prize money to the youth organization that supported their band, alongside other local music groups.
And 1994 winners M People contributed their winnings to a charity for MS after a friend was diagnosed the illness.
"Winning was ample," remarked singer the singer. "The prize was the extra but we didn't need the extra, because we had the cake. So our winning touched another person's life."
Recently, the trust shared it had protected a couple of grassroots venues in south-east England, by placing them under community ownership.
One venue in the city and the other in the city were purchased under the Own Our Venues initiative, which is supported by the arts council and supporters who acquire "ownership units" in the venues.